CHAMPIONS SCHOOL OF REAL
ESTATE- LAW OF AGENCY
QUESTIONS & ANSWERS (RATED A+)
fiduicary - ANSWERAct for or on behalf of another person
Indemnification - ANSWERprotection against damage or loss
agent - ANSWERbased on trust
Customer - ANSWERA person who receives limited brokerage services without
establishing an agency relationship
Client - ANSWERprincipal
An agency relationship exist when one person, the __________, acts for or on behalf
of another person, the __________. - ANSWERAgent, Principal
In-house sale - ANSWERA transaction in which a broker is on both the listing and
selling side
Senate Bill 489 - ANSWERThe legislation that gave the industry the Intermediary
process
Which of the following is true regarding intermediary rules for transaction?
a. The transaction must be an in house sale.
b. Both sides of the transaction must be clients of the broker.
c. The broker must have written consent from both parties.
d. All of these are true. - ANSWERd. All of these are true
Which of the following is grounds for suspension or revocation of a real estate
license by TREC?
a. Splitting the commission with a person person other than a license holder.
b. Splitting commission with a Texas real estate license holder.
c. Disclosing a material defect of property
d. All of these - ANSWERa. Splitting the commission with a person person other than
a license holder.
Universal Agent - ANSWERThe power to act for the principal in all transactions.
Agency by Ratification - ANSWEREstablished when an agent acts without prior
authorization and the principal accepts it
, What form must an agent provide to potential client at the first substantive discussion
of a real estate transaction? - ANSWERInformation About Brokerage Services
(IABS)
An example of a general agent in the world of real estate would be a(n)_________. -
ANSWERProperty Manager
Which of the following would NOT be an example of the fiduciary duty of reasonable
care?
a. Helping the client meet contract deadlines
b. Assisting the seller to arrive at a reasonable listing price.
c. Discovering relevant facts and disclosing these facts to the client.
d. Taking the buyer or seller out to dinner when the transaction closes. - ANSWERd.
Taking the buyer or seller out to dinner when the transaction closes.
In-house sale - ANSWERA property sold by the listing firm
Cooperative sale - ANSWERA property is sold by a firm other than the listing firm
Subagency - ANSWERCreated automatically with no discussion or action needed on
the part of the brokerage firm.
The Commission can deny licensure to an applicant base on the applicant's
__________. - ANSWERDetermination of fitness
Special Agency - ANSWERAlso known as limited agency
General agency - ANSWERThe right to represent the principal in a particular type of
transaction or business
Express Authority - ANSWERAuthority that comes from specific instructions, either
oral or written
Listing side - ANSWERThe seller retains the services of a broker
Selling side - ANSWERThe buyer retains the services of a broker
Seller Kristen meets with agent Angel and likes his plan for marketing her home. She
decides to sign listing agreement with hime, thereby creating a _______ relationship.
- ANSWERSpecial agency or Limited agency
Broker Susan is representing the seller at We Sell it Fast Realty while broker Daniel
from Daniels Properties is working with a buyer customer. Susan is representing the
seller. Who is Daniel representing? - ANSWERThe seller.
In Texas, there is no _______ agency relationship with any party to transaction. -
ANSWERImplied
The commission charged is negotiated between the _______ and ________. -
ANSWERSeller and broker
ESTATE- LAW OF AGENCY
QUESTIONS & ANSWERS (RATED A+)
fiduicary - ANSWERAct for or on behalf of another person
Indemnification - ANSWERprotection against damage or loss
agent - ANSWERbased on trust
Customer - ANSWERA person who receives limited brokerage services without
establishing an agency relationship
Client - ANSWERprincipal
An agency relationship exist when one person, the __________, acts for or on behalf
of another person, the __________. - ANSWERAgent, Principal
In-house sale - ANSWERA transaction in which a broker is on both the listing and
selling side
Senate Bill 489 - ANSWERThe legislation that gave the industry the Intermediary
process
Which of the following is true regarding intermediary rules for transaction?
a. The transaction must be an in house sale.
b. Both sides of the transaction must be clients of the broker.
c. The broker must have written consent from both parties.
d. All of these are true. - ANSWERd. All of these are true
Which of the following is grounds for suspension or revocation of a real estate
license by TREC?
a. Splitting the commission with a person person other than a license holder.
b. Splitting commission with a Texas real estate license holder.
c. Disclosing a material defect of property
d. All of these - ANSWERa. Splitting the commission with a person person other than
a license holder.
Universal Agent - ANSWERThe power to act for the principal in all transactions.
Agency by Ratification - ANSWEREstablished when an agent acts without prior
authorization and the principal accepts it
, What form must an agent provide to potential client at the first substantive discussion
of a real estate transaction? - ANSWERInformation About Brokerage Services
(IABS)
An example of a general agent in the world of real estate would be a(n)_________. -
ANSWERProperty Manager
Which of the following would NOT be an example of the fiduciary duty of reasonable
care?
a. Helping the client meet contract deadlines
b. Assisting the seller to arrive at a reasonable listing price.
c. Discovering relevant facts and disclosing these facts to the client.
d. Taking the buyer or seller out to dinner when the transaction closes. - ANSWERd.
Taking the buyer or seller out to dinner when the transaction closes.
In-house sale - ANSWERA property sold by the listing firm
Cooperative sale - ANSWERA property is sold by a firm other than the listing firm
Subagency - ANSWERCreated automatically with no discussion or action needed on
the part of the brokerage firm.
The Commission can deny licensure to an applicant base on the applicant's
__________. - ANSWERDetermination of fitness
Special Agency - ANSWERAlso known as limited agency
General agency - ANSWERThe right to represent the principal in a particular type of
transaction or business
Express Authority - ANSWERAuthority that comes from specific instructions, either
oral or written
Listing side - ANSWERThe seller retains the services of a broker
Selling side - ANSWERThe buyer retains the services of a broker
Seller Kristen meets with agent Angel and likes his plan for marketing her home. She
decides to sign listing agreement with hime, thereby creating a _______ relationship.
- ANSWERSpecial agency or Limited agency
Broker Susan is representing the seller at We Sell it Fast Realty while broker Daniel
from Daniels Properties is working with a buyer customer. Susan is representing the
seller. Who is Daniel representing? - ANSWERThe seller.
In Texas, there is no _______ agency relationship with any party to transaction. -
ANSWERImplied
The commission charged is negotiated between the _______ and ________. -
ANSWERSeller and broker
