Law of Agency Champions School of
Real Estate 2026 Expert Verified | Ace
the Test
The principal is also known as - 🧠 ANSWER ✔✔client
fiduciary relationship - 🧠 ANSWER ✔✔a relationship founded on trust and
confidence
Agency Relationship - 🧠 ANSWER ✔✔Exists when one person (the agent)
acts for, or on
behalf of another person (the principal).
the principal - 🧠 ANSWER ✔✔is the one who hires and gives authority to
the agent
,Texas Real Estate License Act TRELA - 🧠 ANSWER ✔✔Was passed 1939.
The purpose is to protect the public against unscrupulous brokers and
sales agents.
Texas Real Estate Commission TREC - 🧠 ANSWER ✔✔Was created to
enforce and administer TRELA in 1949. The purpose of this act is to protect
the public against unscrupulous brokers and sales agents.
A licensed broker may not pay a commission to or otherwise compensate a
person directly or indirectly for performing an act of a broker unless the
person is... - 🧠 ANSWER ✔✔a license holder or a real estate broker
licensed in another state
TRELA may suspend or revoke a license or take other disciplinary action if
the license holder, while engaged in real estate brokerage engages in... - 🧠
ANSWER ✔✔conduct that is dishonest or in bad faith or that demonstrates
untrustworthiness
a broker works FOR - 🧠 ANSWER ✔✔a client
a broker works WITH - 🧠 ANSWER ✔✔a customer
, how does a buyer become a client - 🧠 ANSWER ✔✔by entering into a
buyer representation agreement with the broker
Subagent - 🧠 ANSWER ✔✔A 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.
An agency relationship exists when one person, the _____ acts for, or on
behalf of another person, the ______ - 🧠 ANSWER ✔✔agent, principal
which of the following is grounds for suspension or revocation of license by
TREC? - 🧠 ANSWER ✔✔splitting commission with a person other than a
license holder
The commission can deny licensure to an applicant based on the
applicant's _______________________ - 🧠 ANSWER ✔✔moral character
Ostensible Agency - 🧠 ANSWER ✔✔exists when actions lead another
person to assume that one is an agent.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
Real Estate 2026 Expert Verified | Ace
the Test
The principal is also known as - 🧠 ANSWER ✔✔client
fiduciary relationship - 🧠 ANSWER ✔✔a relationship founded on trust and
confidence
Agency Relationship - 🧠 ANSWER ✔✔Exists when one person (the agent)
acts for, or on
behalf of another person (the principal).
the principal - 🧠 ANSWER ✔✔is the one who hires and gives authority to
the agent
,Texas Real Estate License Act TRELA - 🧠 ANSWER ✔✔Was passed 1939.
The purpose is to protect the public against unscrupulous brokers and
sales agents.
Texas Real Estate Commission TREC - 🧠 ANSWER ✔✔Was created to
enforce and administer TRELA in 1949. The purpose of this act is to protect
the public against unscrupulous brokers and sales agents.
A licensed broker may not pay a commission to or otherwise compensate a
person directly or indirectly for performing an act of a broker unless the
person is... - 🧠 ANSWER ✔✔a license holder or a real estate broker
licensed in another state
TRELA may suspend or revoke a license or take other disciplinary action if
the license holder, while engaged in real estate brokerage engages in... - 🧠
ANSWER ✔✔conduct that is dishonest or in bad faith or that demonstrates
untrustworthiness
a broker works FOR - 🧠 ANSWER ✔✔a client
a broker works WITH - 🧠 ANSWER ✔✔a customer
, how does a buyer become a client - 🧠 ANSWER ✔✔by entering into a
buyer representation agreement with the broker
Subagent - 🧠 ANSWER ✔✔A 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.
An agency relationship exists when one person, the _____ acts for, or on
behalf of another person, the ______ - 🧠 ANSWER ✔✔agent, principal
which of the following is grounds for suspension or revocation of license by
TREC? - 🧠 ANSWER ✔✔splitting commission with a person other than a
license holder
The commission can deny licensure to an applicant based on the
applicant's _______________________ - 🧠 ANSWER ✔✔moral character
Ostensible Agency - 🧠 ANSWER ✔✔exists when actions lead another
person to assume that one is an agent.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
