LAW OF AGENCY EXAM QUESTIONS AND SOLUTIONS
ALREADY GRADED A+ LATEST UPDATE.
⫸ Real estate professionals are not expected to have knowledge of matters
outside of the return of the license law. Because of this, a real estate
professional should always refrain from offering advice or opinions in
these areas and should. Answer: Refer the client or the customer to a
professional for help
⫸ What information must an agent disclose to a third party in a
transaction? Answer: Known material facts about the property
⫸ Seller C and Broker D have an oral agreement that Broker D will market
the seller's property and the seller will pay the broker 4.5% of the listing
price when the property sells. Which of the following statements about this
situation is true? Answer: If the seller does not pay the commission, the
broker will not be able to sue for the commission
⫸ Alex had a listing on a property that expired recently. During the term of
his listing Alex learned that the sellers are getting a divorce and are very
anxious to sell. When his listing expired the seller listed with another
company. Now Alex is representing a buyer and is planning on showing her
his old listing. What does Alex do about what he knows about the seller?
Answer: Alex will have to explain to the buyer that he previously had the
listing on this property and he will not be able to disclose any confidential
information he may know about the sellers because his duty of
confidentiality lives forever. Alex will not be able to provide full disclosure
to his buyer
, ⫸ Buyer B signs a Buyer Representation Agreement with Salesperson D,
who is sponsored by Broker C. Which of the following is TRUE in this
situation? Answer: Broker C is technically Buyer B's agent, but Salesperson
D has the authority to act as the buyer's agent
⫸ What is the safest way to enter into a relationship? Answer: Written
agreement
⫸ If common law differs from intermediary laws, which will prevail
according to TRELA? Answer: The laws of the intermediary will prevail
⫸ A client that signs an exclusive Buyer Representation Agreement with a
broker promises to work with that broker if he or she buys a property in
the market area during the terms of the agreement if the property is.
Answer: For sale by owner property, a new home, a resale home
⫸ Which of the following acts would NOT subject a licensee to disciplinary
action by TREC? Answer: Disclose who she represents to all parties up
front
⫸ An agency relationship is created by which agreement when a party
assumes that consent to a relationship was based solely on the other
persons actions, conduct or words? Answer: Implied Agreement
⫸ Who owns a listing? Answer: The broker
⫸ Which of the following tasks would be a client-level service to a buyer?
Answer: Advising the buyer that the seller will accept less than asking price
for the property
⫸ What is the gratuitous agency? Answer: A broker offers a friend or
family member services to buy or sell property free of charge
ALREADY GRADED A+ LATEST UPDATE.
⫸ Real estate professionals are not expected to have knowledge of matters
outside of the return of the license law. Because of this, a real estate
professional should always refrain from offering advice or opinions in
these areas and should. Answer: Refer the client or the customer to a
professional for help
⫸ What information must an agent disclose to a third party in a
transaction? Answer: Known material facts about the property
⫸ Seller C and Broker D have an oral agreement that Broker D will market
the seller's property and the seller will pay the broker 4.5% of the listing
price when the property sells. Which of the following statements about this
situation is true? Answer: If the seller does not pay the commission, the
broker will not be able to sue for the commission
⫸ Alex had a listing on a property that expired recently. During the term of
his listing Alex learned that the sellers are getting a divorce and are very
anxious to sell. When his listing expired the seller listed with another
company. Now Alex is representing a buyer and is planning on showing her
his old listing. What does Alex do about what he knows about the seller?
Answer: Alex will have to explain to the buyer that he previously had the
listing on this property and he will not be able to disclose any confidential
information he may know about the sellers because his duty of
confidentiality lives forever. Alex will not be able to provide full disclosure
to his buyer
, ⫸ Buyer B signs a Buyer Representation Agreement with Salesperson D,
who is sponsored by Broker C. Which of the following is TRUE in this
situation? Answer: Broker C is technically Buyer B's agent, but Salesperson
D has the authority to act as the buyer's agent
⫸ What is the safest way to enter into a relationship? Answer: Written
agreement
⫸ If common law differs from intermediary laws, which will prevail
according to TRELA? Answer: The laws of the intermediary will prevail
⫸ A client that signs an exclusive Buyer Representation Agreement with a
broker promises to work with that broker if he or she buys a property in
the market area during the terms of the agreement if the property is.
Answer: For sale by owner property, a new home, a resale home
⫸ Which of the following acts would NOT subject a licensee to disciplinary
action by TREC? Answer: Disclose who she represents to all parties up
front
⫸ An agency relationship is created by which agreement when a party
assumes that consent to a relationship was based solely on the other
persons actions, conduct or words? Answer: Implied Agreement
⫸ Who owns a listing? Answer: The broker
⫸ Which of the following tasks would be a client-level service to a buyer?
Answer: Advising the buyer that the seller will accept less than asking price
for the property
⫸ What is the gratuitous agency? Answer: A broker offers a friend or
family member services to buy or sell property free of charge
