Law of Agency Final Review Exam 2026
Questions and Answers
Most lawsuits involve issues of who did or did not represent whom. The number of
lawsuits are:
A. Increasing
B. Decreasing
C. Stabilizing over the last several years
D. Broker lawsuits are not allowed - Correct answer-A. Increasing
A broker is more likely to be sued because he failed to make it clear to all parties
who he represented as a client.
The broker working with a buyer customer and representing the seller through the
broker is a:
A. Buyer
B. Seller
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,C. Subagent
D. Intermediary - Correct answer-C. Subagent
For subagency to exist there must be two sponsoring brokers. One of the brokers
has a seller client and the other broker has a buyer customer.
All parties to the transaction must be treated honestly and fairly, but a fiduciary
relationship is owed to the:
A. Customer
B. Client
C. Everyone
D. No one - Correct answer-B. Client
A fiduciary relationship is a relationship of trust. The broker must always put the
clients interest over the broker's interest.
The TRELA does not require disclosure if a death occurred on the property:
A. By natural causes
B. By suicide
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,C. In an accident unrelated to the condition of the property
D. All the above - Correct answer-D. All the above
A murder on the property and an accidental death related to a condition on the
property must be disclosed
Something that affects the property or the health of the residents of the property is
called a(n):
A. Psychological Stigma
B. Exception
C. Physical Stigma
D. None of the above - Correct answer-C. Physical Stigma
A psychological stigma does not affect the physical condition on the property, but
it can affect the value of the property.
Information about Brokerage Services must be given to potential buyers, sellers,
tenants, and landlords:
A. At the time of first meeting
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, B. After the listing is taken
C. At the closing
D. At the first substantive dialogue about a property - Correct answer-D. At the
first substantive dialogue about a property
Information About Brokerage Services gives information concerning the ways a
broker can represent a person. It gives information about buyer's agency, seller's
agency, intermediary, and subagency.
How many companies are required in a subagency relationship?
A. 13
B. 9
C. 4
D. 2 - Correct answer-D. 2
For subagency to exist there must be two sponsoring brokers (companies) and one
of those brokers must have a buyer customer.
What advice would an agent give to a seller?
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Questions and Answers
Most lawsuits involve issues of who did or did not represent whom. The number of
lawsuits are:
A. Increasing
B. Decreasing
C. Stabilizing over the last several years
D. Broker lawsuits are not allowed - Correct answer-A. Increasing
A broker is more likely to be sued because he failed to make it clear to all parties
who he represented as a client.
The broker working with a buyer customer and representing the seller through the
broker is a:
A. Buyer
B. Seller
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,C. Subagent
D. Intermediary - Correct answer-C. Subagent
For subagency to exist there must be two sponsoring brokers. One of the brokers
has a seller client and the other broker has a buyer customer.
All parties to the transaction must be treated honestly and fairly, but a fiduciary
relationship is owed to the:
A. Customer
B. Client
C. Everyone
D. No one - Correct answer-B. Client
A fiduciary relationship is a relationship of trust. The broker must always put the
clients interest over the broker's interest.
The TRELA does not require disclosure if a death occurred on the property:
A. By natural causes
B. By suicide
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,C. In an accident unrelated to the condition of the property
D. All the above - Correct answer-D. All the above
A murder on the property and an accidental death related to a condition on the
property must be disclosed
Something that affects the property or the health of the residents of the property is
called a(n):
A. Psychological Stigma
B. Exception
C. Physical Stigma
D. None of the above - Correct answer-C. Physical Stigma
A psychological stigma does not affect the physical condition on the property, but
it can affect the value of the property.
Information about Brokerage Services must be given to potential buyers, sellers,
tenants, and landlords:
A. At the time of first meeting
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, B. After the listing is taken
C. At the closing
D. At the first substantive dialogue about a property - Correct answer-D. At the
first substantive dialogue about a property
Information About Brokerage Services gives information concerning the ways a
broker can represent a person. It gives information about buyer's agency, seller's
agency, intermediary, and subagency.
How many companies are required in a subagency relationship?
A. 13
B. 9
C. 4
D. 2 - Correct answer-D. 2
For subagency to exist there must be two sponsoring brokers (companies) and one
of those brokers must have a buyer customer.
What advice would an agent give to a seller?
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