For Expert help and assignment handling,
1
Champions Real Estate Exam: Law of Agency
Questions and Answers (100% Correct
Answers) Already Graded A+
This person hires an agent Ans: The Principal
The agent works on behalf of this person Ans: the client (principal)
© 2026 Assignment Expert
This type of agency allows for the greatest range of authority Ans:
Universal
Guru01 - Stuvia
This is provided to the agent when there is written documentation that
the agency relationship exists. Ans: Express authority
This is the most limited of all the agency relationships Ans: Special
agency
This type of agency is created when a 3rd party believes that an agent
has authority that has NOT been granted by a principal Ans: Agency by
Estoppel
This type of agency is created when actions lead another person to
assume that one is an agent (Example- you have a key to neighbors
home and show the property) Ans: Ostensible Agency
If a buyer hasn't signed a buyer's rep agreement, then who is
representing the buyer? Ans: No one
,For Expert help and assignment handling,
2
This establishes a relationship with a broker Ans: The Buyer/Tenant
Representation agreement
This can be written or oral Ans: Disclosure of Representation
These are required to place their own selfish interests behind that of their
clients. Ans: Fiduciaries
A licensee isn't required to provide the IABS when... Ans: the licensee
© 2026 Assignment Expert
meets with a party that is already represented
A broker is obligated to treat who honestly? Ans: client, customer, and
agents
Guru01 - Stuvia
Broker must have written consent to act as... Ans: an intermediary
IABS form is the property of... Ans: TREC
Broker Bob is the broker/owner of ABC Realty. Agent Bill at ABC Realty is
a listing agent. Agent Sue, also at ABC Realty, is working with a buyer
who is being represented by the firm. Agent Sue's buyer wants to
purchase Agent Bill's listing
In the above transaction, Broker Bob will: Ans: Remain neutral and refrain
from providing advice and opinion to either party
The IABS should contain Ans: How the broker will be compensated
Broker Steve, having no agents, is a solo practitioner. He has a client
buyer that wants to purchase one of his listings. The process that Broker
Steve must use is: Ans: Intermediary without appointments
,For Expert help and assignment handling,
3
A fiduciary relationship is based on Ans: trust
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a
buyer who wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has
chosen to not enter into an
agency relationship with City Realty.
© 2026 Assignment Expert
In the above transaction, who is representing the buyer? Ans: No body
because the buyer is a customer.
Guru01 - Stuvia
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a
buyer who wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has
chosen to not enter into an
agency relationship with City Realty.
In the above transaction, who is City Realty representing? Ans: The seller,
because City Realty is a subagent of ABC Realty in this transaction
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a
buyer who wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has
chosen to not enter into an
, For Expert help and assignment handling,
4
agency relationship with City Realty.
What type of transaction is this? Ans: cooperative (co-op)
An exemption to using the Information About Brokerage Services form is:
Ans: a lease for less than 1 year with no sale anticipated
A licensee not associated with the client's broker but who is representing
the client through a
© 2026 Assignment Expert
cooperative agreement with the client's broker is known as: Ans:
Subagent
Guru01 - Stuvia
This must be in at least 10 point type, must have the exact language
prescribed in the License Act
and must be provided to a buyer or seller at the first substantive
discussion of a real estate
transaction Ans: IABS (Information About Brokerage Services)
Jeffrey wants to see property that your company has listed; he does not
want to be represented.
The agent must: Ans: give Jeffrey the IABS form
A licensee must present the Information About Brokerage Services form:
Ans: at the first substantive discussion of a real estate transaction
1
Champions Real Estate Exam: Law of Agency
Questions and Answers (100% Correct
Answers) Already Graded A+
This person hires an agent Ans: The Principal
The agent works on behalf of this person Ans: the client (principal)
© 2026 Assignment Expert
This type of agency allows for the greatest range of authority Ans:
Universal
Guru01 - Stuvia
This is provided to the agent when there is written documentation that
the agency relationship exists. Ans: Express authority
This is the most limited of all the agency relationships Ans: Special
agency
This type of agency is created when a 3rd party believes that an agent
has authority that has NOT been granted by a principal Ans: Agency by
Estoppel
This type of agency is created when actions lead another person to
assume that one is an agent (Example- you have a key to neighbors
home and show the property) Ans: Ostensible Agency
If a buyer hasn't signed a buyer's rep agreement, then who is
representing the buyer? Ans: No one
,For Expert help and assignment handling,
2
This establishes a relationship with a broker Ans: The Buyer/Tenant
Representation agreement
This can be written or oral Ans: Disclosure of Representation
These are required to place their own selfish interests behind that of their
clients. Ans: Fiduciaries
A licensee isn't required to provide the IABS when... Ans: the licensee
© 2026 Assignment Expert
meets with a party that is already represented
A broker is obligated to treat who honestly? Ans: client, customer, and
agents
Guru01 - Stuvia
Broker must have written consent to act as... Ans: an intermediary
IABS form is the property of... Ans: TREC
Broker Bob is the broker/owner of ABC Realty. Agent Bill at ABC Realty is
a listing agent. Agent Sue, also at ABC Realty, is working with a buyer
who is being represented by the firm. Agent Sue's buyer wants to
purchase Agent Bill's listing
In the above transaction, Broker Bob will: Ans: Remain neutral and refrain
from providing advice and opinion to either party
The IABS should contain Ans: How the broker will be compensated
Broker Steve, having no agents, is a solo practitioner. He has a client
buyer that wants to purchase one of his listings. The process that Broker
Steve must use is: Ans: Intermediary without appointments
,For Expert help and assignment handling,
3
A fiduciary relationship is based on Ans: trust
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a
buyer who wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has
chosen to not enter into an
agency relationship with City Realty.
© 2026 Assignment Expert
In the above transaction, who is representing the buyer? Ans: No body
because the buyer is a customer.
Guru01 - Stuvia
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a
buyer who wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has
chosen to not enter into an
agency relationship with City Realty.
In the above transaction, who is City Realty representing? Ans: The seller,
because City Realty is a subagent of ABC Realty in this transaction
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a
buyer who wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has
chosen to not enter into an
, For Expert help and assignment handling,
4
agency relationship with City Realty.
What type of transaction is this? Ans: cooperative (co-op)
An exemption to using the Information About Brokerage Services form is:
Ans: a lease for less than 1 year with no sale anticipated
A licensee not associated with the client's broker but who is representing
the client through a
© 2026 Assignment Expert
cooperative agreement with the client's broker is known as: Ans:
Subagent
Guru01 - Stuvia
This must be in at least 10 point type, must have the exact language
prescribed in the License Act
and must be provided to a buyer or seller at the first substantive
discussion of a real estate
transaction Ans: IABS (Information About Brokerage Services)
Jeffrey wants to see property that your company has listed; he does not
want to be represented.
The agent must: Ans: give Jeffrey the IABS form
A licensee must present the Information About Brokerage Services form:
Ans: at the first substantive discussion of a real estate transaction
