PRINCIPLES 1 REAL ESTATE CHAMPION
SCHOOL QUESTIONS AND CORRECT ANSWERS
LATEST 2025-2026 EXAM UPDATE
Factors that affect insurance premiums - Answer-1;Age and Condition 2;
The home replacement cost 3; Location 4; Availability of local fire
protection 5; The policy claims history 6; The policyholder credit score
Agency - Answer-An agency relationship exists when one person (the
agent) acts for, or on-behalf of another person (the principal is known as
the client). The principal is one who hires the agent and gives authority
to the agent. This relationship is a fiduciary (trust) relationship
Universal Agency - Answer-Has full authority to conduct business on
behalf of the client. (power of Attorney
General Agency - Answer-Broker has agents that work for them. A
general agent may bind the principal, meaning that the agent may sign
certain contracts and agreements in the name of the principal. Agent can
sign for the broker
Special Agency - Answer-(Most Limited) known as the 'limited
agency'. The special agent is NOT able to bind the principal because
they are not allowed to sign or accept any terms or conditions on behalf
of the principal. A broker who sells directly w/ a client (no agent under
the broker). The listing agreement establishes a special agency
relationship between the broker and seller
, Agent Duties - Answer-Obedience, Loyalty, Disclosure,
Confidentiality, Accounting, Reasonable care (OLD CAR)
Trust - Answer-Not A DUTY
Customer - Answer-When a potential buyer contacts an agent for
information regarding a property
Client - Answer-An agreement with broker and agency
What are the 4 economic Characteristics of land - Answer-1,Scarcity, 2,
Modification, 3,Fixity 4, Situs
Scarcity - Answer-Supply and demand, When there is shortage of
something that and individual wants the price goes up.
Situs - Answer-The location of the property or land from an economic
not geographic viewpoint. Preference people have based on location.
Location Location Location....
Ad Valorem Taxes - Answer-Taxes on real properties (according to
value)
SCHOOL QUESTIONS AND CORRECT ANSWERS
LATEST 2025-2026 EXAM UPDATE
Factors that affect insurance premiums - Answer-1;Age and Condition 2;
The home replacement cost 3; Location 4; Availability of local fire
protection 5; The policy claims history 6; The policyholder credit score
Agency - Answer-An agency relationship exists when one person (the
agent) acts for, or on-behalf of another person (the principal is known as
the client). The principal is one who hires the agent and gives authority
to the agent. This relationship is a fiduciary (trust) relationship
Universal Agency - Answer-Has full authority to conduct business on
behalf of the client. (power of Attorney
General Agency - Answer-Broker has agents that work for them. A
general agent may bind the principal, meaning that the agent may sign
certain contracts and agreements in the name of the principal. Agent can
sign for the broker
Special Agency - Answer-(Most Limited) known as the 'limited
agency'. The special agent is NOT able to bind the principal because
they are not allowed to sign or accept any terms or conditions on behalf
of the principal. A broker who sells directly w/ a client (no agent under
the broker). The listing agreement establishes a special agency
relationship between the broker and seller
, Agent Duties - Answer-Obedience, Loyalty, Disclosure,
Confidentiality, Accounting, Reasonable care (OLD CAR)
Trust - Answer-Not A DUTY
Customer - Answer-When a potential buyer contacts an agent for
information regarding a property
Client - Answer-An agreement with broker and agency
What are the 4 economic Characteristics of land - Answer-1,Scarcity, 2,
Modification, 3,Fixity 4, Situs
Scarcity - Answer-Supply and demand, When there is shortage of
something that and individual wants the price goes up.
Situs - Answer-The location of the property or land from an economic
not geographic viewpoint. Preference people have based on location.
Location Location Location....
Ad Valorem Taxes - Answer-Taxes on real properties (according to
value)
