LAW OF AGENCY CHAMPIONS TEXAS REAL ESTATE EXAM LATEST 2025
QUESTIONS AND CORRECT VERIFIED ANSWERS GRADED A+(100%
VERIFIED TO PASS!!!)
Fiduciary -CORRECT ANSWERA relationship based on trust
Agency -CORRECT ANSWERA relationship between two parties
Customer -CORRECT ANSWERA person who receives limited brokerage services without
establishing an agency relationship/Also known as 3rd party.
Client -CORRECT ANSWERAlso known as the principal who engages the professional advice
or services of another, called an agent, and whose interests are protected by the speci c duties
and loyalties of an agency relationship. Many of these duties are outlined in a listing or
buyer/tenant representation agreement
Act that makes it illegal to practice any act of real estate brokerage without a license? -
CORRECT ANSWERTexas Real Estate License Act
agency relationship -CORRECT ANSWERWhen one person, the agent, acts for or on behalf
of another person, the principal, who is also known as the client.
principal -CORRECT ANSWERthe one who hires and gives authority to the agent
Agent -CORRECT ANSWERA broker who represents a seller, landlord, buyer or tenant. (2)
Sales agent or broker license holders who represent the broker with whom they are associated
,Texas Real Estate License Act (TRELA) -CORRECT ANSWERWas passed 1939. Created to
enforce and administer the act in 1949. The purpose of the Act is to protect the public against
unscrupulous brokers and sales agents.
Two types of licenses -CORRECT ANSWERBroker/Sales Agent
If a broker has more than one place of business...What is required for each office? -CORRECT
ANSWERbranch office license is required for each location/not necessary to have a licensed
broker at each location
Federal law dictates that commissions are a matter of __________________________ -
CORRECT ANSWERNegotiations
When dealing with a customer, the broker has duties of
____________________________________________. -CORRECT ANSWERdisclosure,
honesty, fairness and competency
A seller becomes a client by entering into a ___________________ with the broker -
CORRECT ANSWERlisting agreement
A buyer becomes a client by entering into a ___________________________ agreement with
the broker. -CORRECT ANSWERbuyer representation
License holder -CORRECT ANSWERA person licensed by the Texas Real Estate Commission
(TREC) to act as a broker or sales agent in a real estate transaction.
Subagent -CORRECT ANSWERA license holder not associated with the seller's broker, but
who is representing the seller through a cooperative agreement, often through membership in a
Multiple Listing Service (MLS), with the seller's broker.
, Cooperative Broker -CORRECT ANSWERA broker selling the listing of another broker. A
cooperative broker may complete the transaction as a subagent of the listing broker, or may
represent the buyers under an agency agreement; he also known as the other broker
Broker license holder -CORRECT ANSWERAn individual holding a broker's license issued by
TREC. Brokers may act independently in conducting real estate transactions, or may engage
other broker or sales agent license holders to represent them in the conduct of their real estate
business
Sales agent license holder -CORRECT ANSWERAn individual holding a license issued by
TREC an agent of the sponsoring broker. He or she may conduct business only through his or her
sponsoring broker
Broker Associate -CORRECT ANSWERA broker associated with and conducting all of his or
her business as an agent of another broker
Sales Associate -CORRECT ANSWERA sales agent or broker license holder associated with
and conducting business as an agent of his or her sponsoring broker
Seller's Agent -CORRECT ANSWERA broker representing the seller in a real estate
transaction, also referred to as a Seller's Broker, Listing Broker, or Listing Agent
Buyer's Agent -CORRECT ANSWERA broker representing the buyer in a real estate
transaction, also referred to as a Buyer's Broker, Selling Broker, or Selling Agent.
Landlord's Agent -CORRECT ANSWERA broker representing a landlord in a real estate
transaction
Tenant's Agent -CORRECT ANSWERA broker representing a tenant in a real estate
transaction
QUESTIONS AND CORRECT VERIFIED ANSWERS GRADED A+(100%
VERIFIED TO PASS!!!)
Fiduciary -CORRECT ANSWERA relationship based on trust
Agency -CORRECT ANSWERA relationship between two parties
Customer -CORRECT ANSWERA person who receives limited brokerage services without
establishing an agency relationship/Also known as 3rd party.
Client -CORRECT ANSWERAlso known as the principal who engages the professional advice
or services of another, called an agent, and whose interests are protected by the speci c duties
and loyalties of an agency relationship. Many of these duties are outlined in a listing or
buyer/tenant representation agreement
Act that makes it illegal to practice any act of real estate brokerage without a license? -
CORRECT ANSWERTexas Real Estate License Act
agency relationship -CORRECT ANSWERWhen one person, the agent, acts for or on behalf
of another person, the principal, who is also known as the client.
principal -CORRECT ANSWERthe one who hires and gives authority to the agent
Agent -CORRECT ANSWERA broker who represents a seller, landlord, buyer or tenant. (2)
Sales agent or broker license holders who represent the broker with whom they are associated
,Texas Real Estate License Act (TRELA) -CORRECT ANSWERWas passed 1939. Created to
enforce and administer the act in 1949. The purpose of the Act is to protect the public against
unscrupulous brokers and sales agents.
Two types of licenses -CORRECT ANSWERBroker/Sales Agent
If a broker has more than one place of business...What is required for each office? -CORRECT
ANSWERbranch office license is required for each location/not necessary to have a licensed
broker at each location
Federal law dictates that commissions are a matter of __________________________ -
CORRECT ANSWERNegotiations
When dealing with a customer, the broker has duties of
____________________________________________. -CORRECT ANSWERdisclosure,
honesty, fairness and competency
A seller becomes a client by entering into a ___________________ with the broker -
CORRECT ANSWERlisting agreement
A buyer becomes a client by entering into a ___________________________ agreement with
the broker. -CORRECT ANSWERbuyer representation
License holder -CORRECT ANSWERA person licensed by the Texas Real Estate Commission
(TREC) to act as a broker or sales agent in a real estate transaction.
Subagent -CORRECT ANSWERA license holder not associated with the seller's broker, but
who is representing the seller through a cooperative agreement, often through membership in a
Multiple Listing Service (MLS), with the seller's broker.
, Cooperative Broker -CORRECT ANSWERA broker selling the listing of another broker. A
cooperative broker may complete the transaction as a subagent of the listing broker, or may
represent the buyers under an agency agreement; he also known as the other broker
Broker license holder -CORRECT ANSWERAn individual holding a broker's license issued by
TREC. Brokers may act independently in conducting real estate transactions, or may engage
other broker or sales agent license holders to represent them in the conduct of their real estate
business
Sales agent license holder -CORRECT ANSWERAn individual holding a license issued by
TREC an agent of the sponsoring broker. He or she may conduct business only through his or her
sponsoring broker
Broker Associate -CORRECT ANSWERA broker associated with and conducting all of his or
her business as an agent of another broker
Sales Associate -CORRECT ANSWERA sales agent or broker license holder associated with
and conducting business as an agent of his or her sponsoring broker
Seller's Agent -CORRECT ANSWERA broker representing the seller in a real estate
transaction, also referred to as a Seller's Broker, Listing Broker, or Listing Agent
Buyer's Agent -CORRECT ANSWERA broker representing the buyer in a real estate
transaction, also referred to as a Buyer's Broker, Selling Broker, or Selling Agent.
Landlord's Agent -CORRECT ANSWERA broker representing a landlord in a real estate
transaction
Tenant's Agent -CORRECT ANSWERA broker representing a tenant in a real estate
transaction
