ACEABLE LAW OF AGENCY REVIEW EXAM
QUESTIONS WITH 100% CORRECT
ANSWERS|LATEST UPDATE 2025
What is the difference between ethics and morals? - ANSWER-Ethics are
determined by an external group and are standardized, while morals are held
internally and vary by the individual.
An agent has decided to terminate an agency relationship. This is called: -
ANSWER-renunciation
Broker David is holding an open house at his client-seller's home while the seller is
out of town. He gets there early and sees that the cat has peed on the carpets. He
hires an emergency cleaner and charges it to the seller. When the seller returns,
he is glad David acted and pays the bill. This is: - ANSWER-agency by ratification
,Bernard wants to file a claim against his former broker under the DTPA. The
alleged violation happened on June 5, 2015 (which is the same day Bernard found
out about the alleged violation). He intends to file the claim on April 3, 2017. Can
he file a claim? - ANSWER-Yes, Bernard is within the statute of limitations for filing
a claim under the DTPA.
Sarah is Audrey's client. Sarah calls Audrey and tells her that she can show her
home next weekend to an interested potential buyer. What is this an example of?
- ANSWER-express authority
Agency can be terminated by: - ANSWER-All choices are correct.
Agency can be terminated by expiration of the agency agreement, renunciation,
revocation, mutual agreement, death or incapacity of the broker or the principal,
destruction of the property, or fulfillment of purpose.
Which kind of agent has the broadest authority? - ANSWER-universal agent
If a seller fails to give the buyer a Seller's Disclosure Notice before signing the
contract, what consequences could they face? - ANSWER-the buyer can terminate
the contract
, The unauthorized practice of law is prohibited by: - ANSWER-All choices are
correct.
The Code of Ethics, TRELA, and the Rules of the Commission all prohibit the
unauthorized practice of law.
When should a broker give a client the Information About Brokerage Services
Notice? - ANSWER-at the first substantive dialogue or communication
Which of these actions violates the Fair Housing Act? - ANSWER-An agent tells a
woman with a baby that the building she's interested in renting an apartment in is
child-free.
What is the Buyer Representation Agreement? - ANSWER-This agreement
between buyer and broker outlines the responsibilities of each party in the
transaction.
If a license holder pays their own business expenses, including mileage, MLS fees,
association and licensing fees, they are probably a(n): - ANSWER-independent
contractor
QUESTIONS WITH 100% CORRECT
ANSWERS|LATEST UPDATE 2025
What is the difference between ethics and morals? - ANSWER-Ethics are
determined by an external group and are standardized, while morals are held
internally and vary by the individual.
An agent has decided to terminate an agency relationship. This is called: -
ANSWER-renunciation
Broker David is holding an open house at his client-seller's home while the seller is
out of town. He gets there early and sees that the cat has peed on the carpets. He
hires an emergency cleaner and charges it to the seller. When the seller returns,
he is glad David acted and pays the bill. This is: - ANSWER-agency by ratification
,Bernard wants to file a claim against his former broker under the DTPA. The
alleged violation happened on June 5, 2015 (which is the same day Bernard found
out about the alleged violation). He intends to file the claim on April 3, 2017. Can
he file a claim? - ANSWER-Yes, Bernard is within the statute of limitations for filing
a claim under the DTPA.
Sarah is Audrey's client. Sarah calls Audrey and tells her that she can show her
home next weekend to an interested potential buyer. What is this an example of?
- ANSWER-express authority
Agency can be terminated by: - ANSWER-All choices are correct.
Agency can be terminated by expiration of the agency agreement, renunciation,
revocation, mutual agreement, death or incapacity of the broker or the principal,
destruction of the property, or fulfillment of purpose.
Which kind of agent has the broadest authority? - ANSWER-universal agent
If a seller fails to give the buyer a Seller's Disclosure Notice before signing the
contract, what consequences could they face? - ANSWER-the buyer can terminate
the contract
, The unauthorized practice of law is prohibited by: - ANSWER-All choices are
correct.
The Code of Ethics, TRELA, and the Rules of the Commission all prohibit the
unauthorized practice of law.
When should a broker give a client the Information About Brokerage Services
Notice? - ANSWER-at the first substantive dialogue or communication
Which of these actions violates the Fair Housing Act? - ANSWER-An agent tells a
woman with a baby that the building she's interested in renting an apartment in is
child-free.
What is the Buyer Representation Agreement? - ANSWER-This agreement
between buyer and broker outlines the responsibilities of each party in the
transaction.
If a license holder pays their own business expenses, including mileage, MLS fees,
association and licensing fees, they are probably a(n): - ANSWER-independent
contractor
