MGRADES EXAMS
law of agency champions school of real estate
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Principal hires a _______________ to represent them? - CORRECT ANSWER - Agent
________________ _________________ exists when one person works for and on behalf of
another? - CORRECT ANSWER - Agency Relationship
Agent works for or on behalf of a _____________? - CORRECT ANSWER - Client
When was the Texas Real Estate Comission (TREC) established? - CORRECT
ANSWER - 1949
Fiduciary duties owed to customers? - CORRECT ANSWER - Honesty and Fairness
What is a license holder not associated with sellers broker but is representing seller through a
cooperative agreement with sellers broker? - CORRECT ANSWER - Subagent
What is it when a customer is a party to a transaction and not represented by a license holder? -
CORRECT ANSWER - Third Party
What is the best way to create an agency relationship? - CORRECT ANSWER - In
Writing
What are actions that lead another to assume one is an agent? - CORRECT ANSWER -
Ostensible Agency
, MGRADES EXAMS
Agency authority that is that is a result of "the norm" - CORRECT ANSWER - Implied
Authority
When one party is held to the highest degree of good faith, exclude self interest and discloses
relevent facts? - CORRECT ANSWER - Fiduciary Relationship
A general agent has less authority than a _________________ ? - CORRECT ANSWER -
Universal Agent
What requires an agent to follow all of the lawful instructions of a client? - CORRECT
ANSWER - Obedience
Confidential information between the client and the agent is kept__________________
____________________ - CORRECT ANSWER - confidential forever
Disclosure of representation may be either _____________________ or __________________?
- CORRECT ANSWER - Oral or Written
When do you not have to provide the IABAS (information about brokerage services)? -
CORRECT ANSWER - Lease for less than a year
Broker may act as an intermediary with what? - CORRECT ANSWER - Written Consent
Who fills out the sellers disclosure notice? - CORRECT ANSWER - Seller
Who are the listing agreements the property of? - CORRECT ANSWER - The Broker
What should the listing agreements contain? - CORRECT ANSWER - Legal Description
law of agency champions school of real estate
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Principal hires a _______________ to represent them? - CORRECT ANSWER - Agent
________________ _________________ exists when one person works for and on behalf of
another? - CORRECT ANSWER - Agency Relationship
Agent works for or on behalf of a _____________? - CORRECT ANSWER - Client
When was the Texas Real Estate Comission (TREC) established? - CORRECT
ANSWER - 1949
Fiduciary duties owed to customers? - CORRECT ANSWER - Honesty and Fairness
What is a license holder not associated with sellers broker but is representing seller through a
cooperative agreement with sellers broker? - CORRECT ANSWER - Subagent
What is it when a customer is a party to a transaction and not represented by a license holder? -
CORRECT ANSWER - Third Party
What is the best way to create an agency relationship? - CORRECT ANSWER - In
Writing
What are actions that lead another to assume one is an agent? - CORRECT ANSWER -
Ostensible Agency
, MGRADES EXAMS
Agency authority that is that is a result of "the norm" - CORRECT ANSWER - Implied
Authority
When one party is held to the highest degree of good faith, exclude self interest and discloses
relevent facts? - CORRECT ANSWER - Fiduciary Relationship
A general agent has less authority than a _________________ ? - CORRECT ANSWER -
Universal Agent
What requires an agent to follow all of the lawful instructions of a client? - CORRECT
ANSWER - Obedience
Confidential information between the client and the agent is kept__________________
____________________ - CORRECT ANSWER - confidential forever
Disclosure of representation may be either _____________________ or __________________?
- CORRECT ANSWER - Oral or Written
When do you not have to provide the IABAS (information about brokerage services)? -
CORRECT ANSWER - Lease for less than a year
Broker may act as an intermediary with what? - CORRECT ANSWER - Written Consent
Who fills out the sellers disclosure notice? - CORRECT ANSWER - Seller
Who are the listing agreements the property of? - CORRECT ANSWER - The Broker
What should the listing agreements contain? - CORRECT ANSWER - Legal Description
