Aceable Law of Agency Review Exam
Questions and Answers
Here are the four major types of agency acts: - Answer- Listing
Buying
Leasing
Property Management
TREC's purpose is to - Answer- 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 - Answer- Satisfy to the commission (TREC) that the candidate meets and
exceeds their character standards (honesty, trustworthiness, and integrity).
Competence - Answer- Demonstrate competence by passing the licensing exam.
Broker: - Answer- An individual licensed by TREC to perform brokerage duties;
sponsors sales agents to represent clients on their behalf
Sales agent: - Answer- An individual holding a sales agent license from TREC who is
sponsored by a broker
License holder - Answer- A broker or a sales agent licensed by TREC
REALTOR - Answer- A licensed sales agent who is a member of the National
Association of REALTORS®.
Brokers are - Answer- liable for all yysponsored yyactions yycommitted yyby yytheir yysales
yyagents.
Sales yyagents yyrepresent yy- yyAnswer- yytheir yybroker yyin yyall yytransactions yyin yyreal
yyestate yydealings yyand yytransactions.
Listing yyAgent: yy- yyAnswer- yyA yybroker yyrepresenting yya yyseller yyin yya yyreal yyestate
yytransaction,
a.k.a. yyseller's yyagent, yyseller's yybroker, yyor yylisting yybroker
Buyer's yyAgent: yy- yyAnswer- yyA yybroker yyrepresenting yya yybuyer yyin yya yyreal yyestate
yytransaction,
a.k.a. yyselling yyagent, yybuyer's yybroker, yyor yyselling yybroker
Tenant's yyAgent yy- yyAnswer- yyA yybroker yyrepresenting yya yytenant yyin yya yyreal yyestate
yytransaction
, Landlord's yyAgent: yy- yyAnswer- yyA yybroker yyrepresenting yya yylandlord yyin yya yyreal
yyestate yytransaction
Principal yy- yyAnswer- yyThe yymajor yyparties yyof yythe yytransaction yy(the yybuyer yyand
yyseller yyor yylandlord yyand yytenant) yyor yya yyparty yywho yyhas yyauthorized yyan yyagent
yyto yyrepresent yythem
Client yy(principal) yy- yyAnswer- yyAnyone yywho yyhas yyan yyagency yyrelationship yywith
yyyou yyor yyyour yybroker yyis yyyour yyclient
Customer yy- yyAnswer- yyA yyparty yyto yythe yytransaction yywho yyhas yyan yyagency
yyrelationship yywith yyanother yylicense yyholder
Third yyParty yy- yyAnswer- yyAll yynon-client yyparties yyto yya yytransaction, yyincluding yyreal
yyestate yyprofessionals
Types yyof yyPrinciples: yy- yyAnswer- yySeller: yyParty yyseeking yyto yysell yytheir yyproperty
yyin yya yyreal yyestate yytransaction
Buyer: yyParty yyseeking yyto yybuy yyproperty yyin yya yyreal yyestate yytransaction
Tenant: yyParty yywho yyoccupies yyland yyor yyproperty yyrented yyfrom yya yylandlord
Landlord: yyParty yywho yyrents yyland yyor yyproperty yyto yya yytenant
Client yyVs yyCustomer: yy- yyAnswer- yyA yybroker/agent yyworks
yyfor yya yyclient. yyA yybroker/agent yyworks yywith yya yycustomer.
Agency yyrelationships yyrequire yythe yyconsent yyof yyboth yyparties yy(client yyand yyagent),
yywhich yycan yybe yydemonstrated yyby yyone yyof yythree yymethods: yy- yyAnswer-
yyWritten yyagreement
Oral
yyagreement
yyAction
Agency yyrelationships yyare yy- yyAnswer- yyfiduciary yyrelationships; yyThe yyclient's
yyinterest yymust yyalways yycome yyfirst.
the yyprincipal yyauthorizes: yy- yyAnswer- yythe yyagent yyto yyrepresent yytheir yyinterests.
The yyfiduciary yyduties yy(OLD yyCAR) yy- yyAnswer- yyobedience, yyloyalty, yydisclosure,
yyconfidentiality, yyaccounting, yyand yyreasonable yycare
Real yyestate yybrokerage yy- yyAnswer- yyis yya yytype yyof yyagency
Express yyAuthority yy- yyAnswer- yywhen yya yyclient yyhas yygiven yyan yyagent yyexplicit
yypermission yyfor yyan yyaction.
Express yyauthority yycan yybe yygiven yy- yyAnswer- yyboth yyverbally yyor yythrough yya
yywritten yyagreement.
Questions and Answers
Here are the four major types of agency acts: - Answer- Listing
Buying
Leasing
Property Management
TREC's purpose is to - Answer- 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 - Answer- Satisfy to the commission (TREC) that the candidate meets and
exceeds their character standards (honesty, trustworthiness, and integrity).
Competence - Answer- Demonstrate competence by passing the licensing exam.
Broker: - Answer- An individual licensed by TREC to perform brokerage duties;
sponsors sales agents to represent clients on their behalf
Sales agent: - Answer- An individual holding a sales agent license from TREC who is
sponsored by a broker
License holder - Answer- A broker or a sales agent licensed by TREC
REALTOR - Answer- A licensed sales agent who is a member of the National
Association of REALTORS®.
Brokers are - Answer- liable for all yysponsored yyactions yycommitted yyby yytheir yysales
yyagents.
Sales yyagents yyrepresent yy- yyAnswer- yytheir yybroker yyin yyall yytransactions yyin yyreal
yyestate yydealings yyand yytransactions.
Listing yyAgent: yy- yyAnswer- yyA yybroker yyrepresenting yya yyseller yyin yya yyreal yyestate
yytransaction,
a.k.a. yyseller's yyagent, yyseller's yybroker, yyor yylisting yybroker
Buyer's yyAgent: yy- yyAnswer- yyA yybroker yyrepresenting yya yybuyer yyin yya yyreal yyestate
yytransaction,
a.k.a. yyselling yyagent, yybuyer's yybroker, yyor yyselling yybroker
Tenant's yyAgent yy- yyAnswer- yyA yybroker yyrepresenting yya yytenant yyin yya yyreal yyestate
yytransaction
, Landlord's yyAgent: yy- yyAnswer- yyA yybroker yyrepresenting yya yylandlord yyin yya yyreal
yyestate yytransaction
Principal yy- yyAnswer- yyThe yymajor yyparties yyof yythe yytransaction yy(the yybuyer yyand
yyseller yyor yylandlord yyand yytenant) yyor yya yyparty yywho yyhas yyauthorized yyan yyagent
yyto yyrepresent yythem
Client yy(principal) yy- yyAnswer- yyAnyone yywho yyhas yyan yyagency yyrelationship yywith
yyyou yyor yyyour yybroker yyis yyyour yyclient
Customer yy- yyAnswer- yyA yyparty yyto yythe yytransaction yywho yyhas yyan yyagency
yyrelationship yywith yyanother yylicense yyholder
Third yyParty yy- yyAnswer- yyAll yynon-client yyparties yyto yya yytransaction, yyincluding yyreal
yyestate yyprofessionals
Types yyof yyPrinciples: yy- yyAnswer- yySeller: yyParty yyseeking yyto yysell yytheir yyproperty
yyin yya yyreal yyestate yytransaction
Buyer: yyParty yyseeking yyto yybuy yyproperty yyin yya yyreal yyestate yytransaction
Tenant: yyParty yywho yyoccupies yyland yyor yyproperty yyrented yyfrom yya yylandlord
Landlord: yyParty yywho yyrents yyland yyor yyproperty yyto yya yytenant
Client yyVs yyCustomer: yy- yyAnswer- yyA yybroker/agent yyworks
yyfor yya yyclient. yyA yybroker/agent yyworks yywith yya yycustomer.
Agency yyrelationships yyrequire yythe yyconsent yyof yyboth yyparties yy(client yyand yyagent),
yywhich yycan yybe yydemonstrated yyby yyone yyof yythree yymethods: yy- yyAnswer-
yyWritten yyagreement
Oral
yyagreement
yyAction
Agency yyrelationships yyare yy- yyAnswer- yyfiduciary yyrelationships; yyThe yyclient's
yyinterest yymust yyalways yycome yyfirst.
the yyprincipal yyauthorizes: yy- yyAnswer- yythe yyagent yyto yyrepresent yytheir yyinterests.
The yyfiduciary yyduties yy(OLD yyCAR) yy- yyAnswer- yyobedience, yyloyalty, yydisclosure,
yyconfidentiality, yyaccounting, yyand yyreasonable yycare
Real yyestate yybrokerage yy- yyAnswer- yyis yya yytype yyof yyagency
Express yyAuthority yy- yyAnswer- yywhen yya yyclient yyhas yygiven yyan yyagent yyexplicit
yypermission yyfor yyan yyaction.
Express yyauthority yycan yybe yygiven yy- yyAnswer- yyboth yyverbally yyor yythrough yya
yywritten yyagreement.
