TREBS EXAM 3 QUESTIONS AND ANSWERS
Most lawsuits involve issues of who did or did not represent whom. The number of
lawsuits:
A. Are increasing
B. Are decreasing
C. Have stabilized over the last several years
D. Are not allowed - Answer -A. Are increasing
We study agency because:
A. The Texas Real Estate Commission requires people wishing to be licensed take an
Agency class.
B. Only brokers study agency.
C. Only attorneys should study agency.
D. The client is required to take a class in agency. - Answer -A. The Texas Real Estate
Commission requires people wishing to be licensed take an Agency class.
The broker working with a buyer customer and representing the seller through the
seller's broker is a(n):
A. Buyer
B. Seller
C. Subagent
D. Intermediary - Answer -C. Subagent
All parties to the transaction must be treated honestly and fairly, but a fiduciary
relationship is owed to:
A. The customer
B. The client
C. Everyone
D. No one - Answer -B. The client
How many companies are required in a subagency relationship?
A. 13
B. 9
C. 4
D. 2 - Answer -D. 2
What advice would an agent give to a seller?
A. Advice about market conditions and financing options
, B. Advice about preparing the property for sale and negotiating contracts
C. Both A and B
D. None of the above - Answer -C. Both A and B
The listing broker may cooperate with the buyer's broker or a subagent. Often the
commission for all brokers in the transaction is paid by the:
A. Subagent
B. Buyer
C. Seller
D. Attorney - Answer -C. Seller
When a broker is working with a buyer customer, the broker can:
A. Give advice
B. Tell the buyer the amount to offer for the property
C. Deliver the offer to the seller's broker
D. Give opinions - Answer -C. Deliver the offer to the seller's broker
A listing broker is not required to:
A. Maintain a fixed office address
B. Use Information About Brokerage Services
C. Allow subagency
D. Have a license issued by TREC - Answer -C. Allow subagency
The buyer's agent will view the transaction from the buyer's point of view and will
counsel the buyer on:
A. Financing the property
B. Contingencies
C. Negotiating strategy
D. All of the above - Answer -D. All of the above
When the salesperson leaves the sponsorship of the broker, the buyer's agreement:
A. Remains with the broker
B. Is cancelled
C. Is always given to the salesperson
D. Doubles in length
Rationale: The correct answer is A. All listing agreements and all buyer representation
agreements are taken in the name of the broker and become the property of the broker.
- Answer -A. Remains with the broker
After the agency relationship has been established, the broker is the agent of the
_________, and the sponsored salesperson is the agent of the ________.
Most lawsuits involve issues of who did or did not represent whom. The number of
lawsuits:
A. Are increasing
B. Are decreasing
C. Have stabilized over the last several years
D. Are not allowed - Answer -A. Are increasing
We study agency because:
A. The Texas Real Estate Commission requires people wishing to be licensed take an
Agency class.
B. Only brokers study agency.
C. Only attorneys should study agency.
D. The client is required to take a class in agency. - Answer -A. The Texas Real Estate
Commission requires people wishing to be licensed take an Agency class.
The broker working with a buyer customer and representing the seller through the
seller's broker is a(n):
A. Buyer
B. Seller
C. Subagent
D. Intermediary - Answer -C. Subagent
All parties to the transaction must be treated honestly and fairly, but a fiduciary
relationship is owed to:
A. The customer
B. The client
C. Everyone
D. No one - Answer -B. The client
How many companies are required in a subagency relationship?
A. 13
B. 9
C. 4
D. 2 - Answer -D. 2
What advice would an agent give to a seller?
A. Advice about market conditions and financing options
, B. Advice about preparing the property for sale and negotiating contracts
C. Both A and B
D. None of the above - Answer -C. Both A and B
The listing broker may cooperate with the buyer's broker or a subagent. Often the
commission for all brokers in the transaction is paid by the:
A. Subagent
B. Buyer
C. Seller
D. Attorney - Answer -C. Seller
When a broker is working with a buyer customer, the broker can:
A. Give advice
B. Tell the buyer the amount to offer for the property
C. Deliver the offer to the seller's broker
D. Give opinions - Answer -C. Deliver the offer to the seller's broker
A listing broker is not required to:
A. Maintain a fixed office address
B. Use Information About Brokerage Services
C. Allow subagency
D. Have a license issued by TREC - Answer -C. Allow subagency
The buyer's agent will view the transaction from the buyer's point of view and will
counsel the buyer on:
A. Financing the property
B. Contingencies
C. Negotiating strategy
D. All of the above - Answer -D. All of the above
When the salesperson leaves the sponsorship of the broker, the buyer's agreement:
A. Remains with the broker
B. Is cancelled
C. Is always given to the salesperson
D. Doubles in length
Rationale: The correct answer is A. All listing agreements and all buyer representation
agreements are taken in the name of the broker and become the property of the broker.
- Answer -A. Remains with the broker
After the agency relationship has been established, the broker is the agent of the
_________, and the sponsored salesperson is the agent of the ________.
