Champions Real Estate Exam Law of
Agency 2026 Exam All Answers and
Illustrations Given
This person hires an agent - 🧠 ANSWER ✔✔The Principal
The agent works on behalf of this person - 🧠 ANSWER ✔✔the client
(principal)
This type of agency allows for the greatest range of authority - 🧠 ANSWER
✔✔Universal
This is provided to the agent when there is written documentation that the
agency relationship exists. - 🧠 ANSWER ✔✔Express authority
,This is the most limited of all the agency relationships - 🧠 ANSWER
✔✔Special agency
This type of agency is created when a 3rd party believes that an agent has
authority that has NOT been granted by a principal - 🧠 ANSWER
✔✔Agency by Estoppel
This type of agency is created when actions lead another person to
assume that one is an agent (Example- you have a key to neighbors home
and show the property) - 🧠 ANSWER ✔✔Ostensible Agency
If a buyer hasn't signed a buyer's rep agreement, then who is representing
the buyer? - 🧠 ANSWER ✔✔No one
This establishes a relationship with a broker - 🧠 ANSWER ✔✔The
Buyer/Tenant Representation agreement
This can be written or oral - 🧠 ANSWER ✔✔Disclosure of Representation
These are required to place their own selfish interests behind that of their
clients. - 🧠 ANSWER ✔✔Fiduciaries
A licensee isn't required to provide the IABS when... - 🧠 ANSWER ✔✔the
licensee meets with a party that is already represented
,A broker is obligated to treat who honestly? - 🧠 ANSWER ✔✔client,
customer, and agents
Broker must have written consent to act as... - 🧠 ANSWER ✔✔an
intermediary
IABS form is the property of... - 🧠 ANSWER ✔✔TREC
Broker Bob is the broker/owner of ABC Realty. Agent Bill at ABC Realty is
a listing agent. Agent Sue, also at ABC Realty, is working with a buyer who
is being represented by the firm. Agent Sue's buyer wants to purchase
Agent Bill's listing
In the above transaction, Broker Bob will: - 🧠 ANSWER ✔✔Remain neutral
and refrain from providing advice and opinion to either party
The IABS should contain - 🧠 ANSWER ✔✔How the broker will be
compensated
Broker Steve, having no agents, is a solo practitioner. He has a client buyer
that wants to purchase one of his listings. The process that Broker Steve
must use is: - 🧠 ANSWER ✔✔Intermediary without appointments
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, A fiduciary relationship is based on - 🧠 ANSWER ✔✔trust
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a
buyer who wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has
chosen to not enter into an
agency relationship with City Realty.
In the above transaction, who is representing the buyer? - 🧠 ANSWER
✔✔No body because the buyer is a customer.
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a
buyer who wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has
chosen to not enter into an
agency relationship with City Realty.
In the above transaction, who is City Realty representing? - 🧠 ANSWER
✔✔The seller, because City Realty is a subagent of ABC Realty in this
transaction
Agency 2026 Exam All Answers and
Illustrations Given
This person hires an agent - 🧠 ANSWER ✔✔The Principal
The agent works on behalf of this person - 🧠 ANSWER ✔✔the client
(principal)
This type of agency allows for the greatest range of authority - 🧠 ANSWER
✔✔Universal
This is provided to the agent when there is written documentation that the
agency relationship exists. - 🧠 ANSWER ✔✔Express authority
,This is the most limited of all the agency relationships - 🧠 ANSWER
✔✔Special agency
This type of agency is created when a 3rd party believes that an agent has
authority that has NOT been granted by a principal - 🧠 ANSWER
✔✔Agency by Estoppel
This type of agency is created when actions lead another person to
assume that one is an agent (Example- you have a key to neighbors home
and show the property) - 🧠 ANSWER ✔✔Ostensible Agency
If a buyer hasn't signed a buyer's rep agreement, then who is representing
the buyer? - 🧠 ANSWER ✔✔No one
This establishes a relationship with a broker - 🧠 ANSWER ✔✔The
Buyer/Tenant Representation agreement
This can be written or oral - 🧠 ANSWER ✔✔Disclosure of Representation
These are required to place their own selfish interests behind that of their
clients. - 🧠 ANSWER ✔✔Fiduciaries
A licensee isn't required to provide the IABS when... - 🧠 ANSWER ✔✔the
licensee meets with a party that is already represented
,A broker is obligated to treat who honestly? - 🧠 ANSWER ✔✔client,
customer, and agents
Broker must have written consent to act as... - 🧠 ANSWER ✔✔an
intermediary
IABS form is the property of... - 🧠 ANSWER ✔✔TREC
Broker Bob is the broker/owner of ABC Realty. Agent Bill at ABC Realty is
a listing agent. Agent Sue, also at ABC Realty, is working with a buyer who
is being represented by the firm. Agent Sue's buyer wants to purchase
Agent Bill's listing
In the above transaction, Broker Bob will: - 🧠 ANSWER ✔✔Remain neutral
and refrain from providing advice and opinion to either party
The IABS should contain - 🧠 ANSWER ✔✔How the broker will be
compensated
Broker Steve, having no agents, is a solo practitioner. He has a client buyer
that wants to purchase one of his listings. The process that Broker Steve
must use is: - 🧠 ANSWER ✔✔Intermediary without appointments
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, A fiduciary relationship is based on - 🧠 ANSWER ✔✔trust
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a
buyer who wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has
chosen to not enter into an
agency relationship with City Realty.
In the above transaction, who is representing the buyer? - 🧠 ANSWER
✔✔No body because the buyer is a customer.
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a
buyer who wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has
chosen to not enter into an
agency relationship with City Realty.
In the above transaction, who is City Realty representing? - 🧠 ANSWER
✔✔The seller, because City Realty is a subagent of ABC Realty in this
transaction
