Law of Agency Study
Guide for Exam 1 2026 |
Questions, Answers &
Detailed Rationales
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success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, How is agency terminated - When the purpose of the agency is completed; property is sold
- Expiration of the period stated in the listing contract.
- Anytime by mutual agreement
- Death or incapacity of either party
- Condemnation or destruction of the property
- Bankruptcy
- Operation of law
- Revocation of broker's license
- Abandonment by the agent
- Revocation of the agreement at any time by principal
- Termination of agreement at any time by broker.
Sherman Anti-Trust Act and commission rates Commission rates must be a matter of negotiation between broker and client. A
"standard" or "goin rate" could be evidence of violation
Details in a valid listing -Paragraph 1. Parties
- Paragraph 2. Property
-Paragraph 3. Listing Price
- Paragraph 4. Term
- Paragraph 5. Broker's Compensation
- Paragraph 6. Listing Services
- Paragraph 7. Access to The Property
- Paragraph 8. Cooperation with other Brokers
- Paragraph 9. Intermediary
- Paragraph 10. Confidential Information
- Paragraph 11. Broker's Authority
- Paragraph 12. Seller's Representations
- Paragraph 13. Seller's Additional Promises
- 14. Limitation of Liability
- 15. Special Provisions
- 16. Default
- 17. Mediation
- 18. Attorney's Fees
- 19. Addenda and other Documents
- 20. Agreement of Parties
- 21. Additional Notices
-
What are the duties of the Principal - COMPENSATION; agents should be paid on the completion of the agency
- REIMBURSEMENT; agent should be reimbursed by principal for expenses
incurred on behalf of principal
- INDEMNIFICATION ; Principal will protect agent form suffering loss due to
agent's reliance on information received from principal.
- PERFORMANCE ; Principal is expected to perform as promised in agency
agreement.
What are the requirements of a valid listing agreement - Signatures of all owners and listing agent
- Legal description of property, including street address
- List price of property as set by seller
- Definite starting and ending date
- Agreement to pay a stated commission to broker
Guide for Exam 1 2026 |
Questions, Answers &
Detailed Rationales
|Graded A+ | Guaranteed
success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, How is agency terminated - When the purpose of the agency is completed; property is sold
- Expiration of the period stated in the listing contract.
- Anytime by mutual agreement
- Death or incapacity of either party
- Condemnation or destruction of the property
- Bankruptcy
- Operation of law
- Revocation of broker's license
- Abandonment by the agent
- Revocation of the agreement at any time by principal
- Termination of agreement at any time by broker.
Sherman Anti-Trust Act and commission rates Commission rates must be a matter of negotiation between broker and client. A
"standard" or "goin rate" could be evidence of violation
Details in a valid listing -Paragraph 1. Parties
- Paragraph 2. Property
-Paragraph 3. Listing Price
- Paragraph 4. Term
- Paragraph 5. Broker's Compensation
- Paragraph 6. Listing Services
- Paragraph 7. Access to The Property
- Paragraph 8. Cooperation with other Brokers
- Paragraph 9. Intermediary
- Paragraph 10. Confidential Information
- Paragraph 11. Broker's Authority
- Paragraph 12. Seller's Representations
- Paragraph 13. Seller's Additional Promises
- 14. Limitation of Liability
- 15. Special Provisions
- 16. Default
- 17. Mediation
- 18. Attorney's Fees
- 19. Addenda and other Documents
- 20. Agreement of Parties
- 21. Additional Notices
-
What are the duties of the Principal - COMPENSATION; agents should be paid on the completion of the agency
- REIMBURSEMENT; agent should be reimbursed by principal for expenses
incurred on behalf of principal
- INDEMNIFICATION ; Principal will protect agent form suffering loss due to
agent's reliance on information received from principal.
- PERFORMANCE ; Principal is expected to perform as promised in agency
agreement.
What are the requirements of a valid listing agreement - Signatures of all owners and listing agent
- Legal description of property, including street address
- List price of property as set by seller
- Definite starting and ending date
- Agreement to pay a stated commission to broker
