TEXAS LAW OF AGENCY 4 CERTIFICATION
EVALUATION 2026 QUESTIONS WITH
PRACTICE SOLUTION GRADED A+
◉ Which of the following is NOT a growing trend in real estate
transactions?
1. Lower consumer expectations.
2. Use of buyer brokerage.
3. Legal protections for consumers.
4. Greater licensee professionalism. Answer: 1. Lower consumer
expectations
◉ A licensee is prohibited from performing which of the following
for a customer?
1. Discuss different types of mortgages.
2. Handle the customer's money .
3. Show the customer the property.
4. Convey information from the seller. Answer: 2. Handle the
customer's money. This is a fiduciary duty and a licensee agent
cannot be a fiduciary for a customer.
,◉ Nearly every state requires
1. representation of the seller..
2. representation of the buyer..
3. written or oral disclosure of agency..
4. dual agency.. Answer: 3. written or oral disclosure of agency
◉ Where in the Texas Administrative Code are the rules pertaining
to real estate professionals?
1. Title 18.
2. Title 20.
3. Title 22.
4. Title 24. Answer: 3. Title 22 - Title 22 of the Texas Administrative
Code (TAC) governs real estate professionals..
◉ To a real estate agent, the difference between a client and a
customer is best described by which of the following statements?
1. The agent has a duty of fairness to a client and a fiduciary duty to
a customer. .
2. The agent has a fiduciary duty to neither the client nor the
customer..
3. The agent has a duty of fairness to both the client and the
customer..
4. The agent has a fiduciary duty to a client and a duty of fairness to
a customer.. Answer: 4. The agent has a fiduciary duty to a client and
,a duty of fairness to a customer - A licensee works with a customer
and for a client.
◉ A broker who assumes responsibility for the real estate brokerage
activities of a sales agent is called a
1. broker associate..
2. subagent..
3. sponsoring broker..
4. fiduciary.. Answer: 3. sponsoring broker
◉ Can the buyer in a real estate transaction ever be considered a
client?
1. No, only sellers are clients because they work with agents..
2. Yes, if the buyer has a buyer's agent..
3. No, TRELA defines "client" as a seller. .
4. Yes, only if the buyer agrees to use the seller's agent.. Answer: 2.
Yes, if the buyer has a buyer's agent.
◉ Which is NOT noted as a reason for studying agency law?
1. Increased commission fees.
, 2. Increased complexity of transactions.
3. Increased litigation.
4. Greater consumer expectations. Answer: 1. increased commission
fees - Fees are not considered under the concept of agency, but
rather they are the compensation agreed to between the broker and
the consumer to whom the broker has agreed to provide service. ..
◉ TREC is BEST described as an agency that
1. protects consumers..
2. manages real estate..
3. settles law suits among licensees..
4. determines real property tax rates.. Answer: 1. protects
consumers - If TREC receives a complaint about the practice of a
licensee who has violated TRELA, it may investigate the complaint
and take the appropriate action, which could result in fines and/or
suspension or revocation of the license. .
◉ One of the principals to a real estate transaction is considered
which of the following?
1. An offeror.
2. An offeree.
3. A party .
EVALUATION 2026 QUESTIONS WITH
PRACTICE SOLUTION GRADED A+
◉ Which of the following is NOT a growing trend in real estate
transactions?
1. Lower consumer expectations.
2. Use of buyer brokerage.
3. Legal protections for consumers.
4. Greater licensee professionalism. Answer: 1. Lower consumer
expectations
◉ A licensee is prohibited from performing which of the following
for a customer?
1. Discuss different types of mortgages.
2. Handle the customer's money .
3. Show the customer the property.
4. Convey information from the seller. Answer: 2. Handle the
customer's money. This is a fiduciary duty and a licensee agent
cannot be a fiduciary for a customer.
,◉ Nearly every state requires
1. representation of the seller..
2. representation of the buyer..
3. written or oral disclosure of agency..
4. dual agency.. Answer: 3. written or oral disclosure of agency
◉ Where in the Texas Administrative Code are the rules pertaining
to real estate professionals?
1. Title 18.
2. Title 20.
3. Title 22.
4. Title 24. Answer: 3. Title 22 - Title 22 of the Texas Administrative
Code (TAC) governs real estate professionals..
◉ To a real estate agent, the difference between a client and a
customer is best described by which of the following statements?
1. The agent has a duty of fairness to a client and a fiduciary duty to
a customer. .
2. The agent has a fiduciary duty to neither the client nor the
customer..
3. The agent has a duty of fairness to both the client and the
customer..
4. The agent has a fiduciary duty to a client and a duty of fairness to
a customer.. Answer: 4. The agent has a fiduciary duty to a client and
,a duty of fairness to a customer - A licensee works with a customer
and for a client.
◉ A broker who assumes responsibility for the real estate brokerage
activities of a sales agent is called a
1. broker associate..
2. subagent..
3. sponsoring broker..
4. fiduciary.. Answer: 3. sponsoring broker
◉ Can the buyer in a real estate transaction ever be considered a
client?
1. No, only sellers are clients because they work with agents..
2. Yes, if the buyer has a buyer's agent..
3. No, TRELA defines "client" as a seller. .
4. Yes, only if the buyer agrees to use the seller's agent.. Answer: 2.
Yes, if the buyer has a buyer's agent.
◉ Which is NOT noted as a reason for studying agency law?
1. Increased commission fees.
, 2. Increased complexity of transactions.
3. Increased litigation.
4. Greater consumer expectations. Answer: 1. increased commission
fees - Fees are not considered under the concept of agency, but
rather they are the compensation agreed to between the broker and
the consumer to whom the broker has agreed to provide service. ..
◉ TREC is BEST described as an agency that
1. protects consumers..
2. manages real estate..
3. settles law suits among licensees..
4. determines real property tax rates.. Answer: 1. protects
consumers - If TREC receives a complaint about the practice of a
licensee who has violated TRELA, it may investigate the complaint
and take the appropriate action, which could result in fines and/or
suspension or revocation of the license. .
◉ One of the principals to a real estate transaction is considered
which of the following?
1. An offeror.
2. An offeree.
3. A party .
