CHAMPIONS REAL ESTATE
EXAM: LAW OF AGENCY
UPDATED EXAM QUESTIONS
AND ANSWERS WITH
RATIONALES COMPLETE AND
WELL EXPLAINED 100%
CORRECTLY VERIFIED BY
EXPERTS LATEST UPDATE 2024
GRADED A+ 100%
GUARANTEED SUCCESS AFTER
DOWNLOAD (ALL YOU NEED
TO PASS YOUR EXAMS)
,
, In the above transaction, who is representing the buyer? 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? The seller, because City Realty is a
subagent of ABC Realty in this transaction
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.
What type of transaction is this? cooperative (co-op)
An exemption to using the Information About Brokerage Services form is: a lease for less than 1
year with no sale anticipated
A licensee not associated with the client's broker but who is representing the client through a
cooperative agreement with the client's broker is known as: Subagent
This must be in at least 10 point type, must have the exact language prescribed in the License Act
and must be provided to a buyer or seller at the first substantive discussion of a real estate
transaction IABS (Information About Brokerage Services)
Jeffrey wants to see property that your company has listed; he does not want to be represented.
The agent must: give Jeffrey the IABS form
A licensee must present the Information About Brokerage Services form: at the first substantive
discussion of a real estate transaction
A licensee has a listing with a seller and has a buyer's representation agreement signed with a
buyer who desires to purchase this agent's listing. How is the agent operating? as a non-appointed
associate in an Intermediary relationship
TREC was established in: 1949
Which of the following is the real estate licensing authority in Texas? TREC
A termination date in a listing agreement must be: definite
Which of the following is NOT an agent's duty to a client? Trust
These are the duties: OLDCAR: Obedience, loyalty, disclosure, confidentiality, accounting, reasonable
care
, This person hires an agent The Principal
The agent works on behalf of this person the client (principal)
This type of agency allows for the greatest range of authority Universal
This is provided to the agent when there is written documentation that the agency relationship exists.
Express authority
This is the most limited of all the agency relationships 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 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) Ostensible Agency
If a buyer hasn't signed a buyer's rep agreement, then who is representing the buyer? No one
This establishes a relationship with a broker The Buyer/Tenant Representation agreement
This can be written or oral Disclosure of Representation
These are required to place their own selfish interests behind that of their clients. Fiduciaries
A licensee isn't required to provide the IABS when... the licensee meets with a party that is already
represented
A broker is obligated to treat who honestly? client, customer, and agents
Broker must have written consent to act as... an intermediary
IABS form is the property of... 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: Remain neutral and refrain from providing advice and
opinion to either party
The IABS should containHow 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:Intermediary without appointments
A fiduciary relationship is based on 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.
EXAM: LAW OF AGENCY
UPDATED EXAM QUESTIONS
AND ANSWERS WITH
RATIONALES COMPLETE AND
WELL EXPLAINED 100%
CORRECTLY VERIFIED BY
EXPERTS LATEST UPDATE 2024
GRADED A+ 100%
GUARANTEED SUCCESS AFTER
DOWNLOAD (ALL YOU NEED
TO PASS YOUR EXAMS)
,
, In the above transaction, who is representing the buyer? 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? The seller, because City Realty is a
subagent of ABC Realty in this transaction
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.
What type of transaction is this? cooperative (co-op)
An exemption to using the Information About Brokerage Services form is: a lease for less than 1
year with no sale anticipated
A licensee not associated with the client's broker but who is representing the client through a
cooperative agreement with the client's broker is known as: Subagent
This must be in at least 10 point type, must have the exact language prescribed in the License Act
and must be provided to a buyer or seller at the first substantive discussion of a real estate
transaction IABS (Information About Brokerage Services)
Jeffrey wants to see property that your company has listed; he does not want to be represented.
The agent must: give Jeffrey the IABS form
A licensee must present the Information About Brokerage Services form: at the first substantive
discussion of a real estate transaction
A licensee has a listing with a seller and has a buyer's representation agreement signed with a
buyer who desires to purchase this agent's listing. How is the agent operating? as a non-appointed
associate in an Intermediary relationship
TREC was established in: 1949
Which of the following is the real estate licensing authority in Texas? TREC
A termination date in a listing agreement must be: definite
Which of the following is NOT an agent's duty to a client? Trust
These are the duties: OLDCAR: Obedience, loyalty, disclosure, confidentiality, accounting, reasonable
care
, This person hires an agent The Principal
The agent works on behalf of this person the client (principal)
This type of agency allows for the greatest range of authority Universal
This is provided to the agent when there is written documentation that the agency relationship exists.
Express authority
This is the most limited of all the agency relationships 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 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) Ostensible Agency
If a buyer hasn't signed a buyer's rep agreement, then who is representing the buyer? No one
This establishes a relationship with a broker The Buyer/Tenant Representation agreement
This can be written or oral Disclosure of Representation
These are required to place their own selfish interests behind that of their clients. Fiduciaries
A licensee isn't required to provide the IABS when... the licensee meets with a party that is already
represented
A broker is obligated to treat who honestly? client, customer, and agents
Broker must have written consent to act as... an intermediary
IABS form is the property of... 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: Remain neutral and refrain from providing advice and
opinion to either party
The IABS should containHow 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:Intermediary without appointments
A fiduciary relationship is based on 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.
