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Aceable Law of Agency Review Questions
and Correct Answers
Here are the four major types of agency acts: Ans: Listing
Buying
Leasing
Property Management
TREC's purpose is to Ans: regulate educational and licensing
programs that maintain standards AND interpret legislation that
affects the real estate profession — primarily the Texas Real Estate
License Act (TRELA).
Integrity Ans: Satisfy to the commission (TREC) that the candidate
meets and exceeds their character standards (honesty,
trustworthiness, and integrity).
Competence Ans: Demonstrate competence by passing the
licensing exam.
Broker: Ans: An individual licensed by TREC to perform brokerage
duties; sponsors sales agents to represent clients on their behalf
© 2025 All rights reserved
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Sales agent: Ans: An individual holding a sales agent license from
TREC who is sponsored by a broker
License holder Ans: A broker or a sales agent licensed by TREC
REALTOR Ans: A licensed sales agent who is a member of the
National Association of REALTORS®.
Brokers are Ans: liable for all sponsored actions committed by
their sales agents.
Sales agents represent Ans: their broker in all transactions in real
estate dealings and transactions.
Listing Agent: Ans: A broker representing a seller in a real estate
transaction, a.k.a. seller's agent, seller's broker, or listing broker
Buyer's Agent: Ans: A broker representing a buyer in a real estate
transaction, a.k.a. selling agent, buyer's broker, or selling broker
Tenant's Agent Ans: A broker representing a tenant in a real
estate transaction
Landlord's Agent: Ans: A broker representing a landlord in a real
estate transaction
© 2025 All rights reserved
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Principal Ans: The major parties of the transaction (the buyer and
seller or landlord and tenant) or a party who has authorized an
agent to represent them
Client (principal) Ans: Anyone who has an agency relationship
with you or your broker is your client
Customer Ans: A party to the transaction who has an agency
relationship with another license holder
Third Party Ans: All non-client parties to a transaction, including
real estate professionals
Types of Principles: Ans: Seller: Party seeking to sell their
property in a real estate transaction
Buyer: Party seeking to buy property in a real estate transaction
Tenant: Party who occupies land or property rented from a
landlord
Landlord: Party who rents land or property to a tenant
© 2025 All rights reserved
Aceable Law of Agency Review Questions
and Correct Answers
Here are the four major types of agency acts: Ans: Listing
Buying
Leasing
Property Management
TREC's purpose is to Ans: regulate educational and licensing
programs that maintain standards AND interpret legislation that
affects the real estate profession — primarily the Texas Real Estate
License Act (TRELA).
Integrity Ans: Satisfy to the commission (TREC) that the candidate
meets and exceeds their character standards (honesty,
trustworthiness, and integrity).
Competence Ans: Demonstrate competence by passing the
licensing exam.
Broker: Ans: An individual licensed by TREC to perform brokerage
duties; sponsors sales agents to represent clients on their behalf
© 2025 All rights reserved
, 2 | Page
Sales agent: Ans: An individual holding a sales agent license from
TREC who is sponsored by a broker
License holder Ans: A broker or a sales agent licensed by TREC
REALTOR Ans: A licensed sales agent who is a member of the
National Association of REALTORS®.
Brokers are Ans: liable for all sponsored actions committed by
their sales agents.
Sales agents represent Ans: their broker in all transactions in real
estate dealings and transactions.
Listing Agent: Ans: A broker representing a seller in a real estate
transaction, a.k.a. seller's agent, seller's broker, or listing broker
Buyer's Agent: Ans: A broker representing a buyer in a real estate
transaction, a.k.a. selling agent, buyer's broker, or selling broker
Tenant's Agent Ans: A broker representing a tenant in a real
estate transaction
Landlord's Agent: Ans: A broker representing a landlord in a real
estate transaction
© 2025 All rights reserved
, 3 | Page
Principal Ans: The major parties of the transaction (the buyer and
seller or landlord and tenant) or a party who has authorized an
agent to represent them
Client (principal) Ans: Anyone who has an agency relationship
with you or your broker is your client
Customer Ans: A party to the transaction who has an agency
relationship with another license holder
Third Party Ans: All non-client parties to a transaction, including
real estate professionals
Types of Principles: Ans: Seller: Party seeking to sell their
property in a real estate transaction
Buyer: Party seeking to buy property in a real estate transaction
Tenant: Party who occupies land or property rented from a
landlord
Landlord: Party who rents land or property to a tenant
© 2025 All rights reserved
