CHAMPIONS SCHOOL OF REAL ESTATE PRINCIPLE OF REAL ESTATE 1 ACTUAL EXAMS COMPLETE REAL QUESTIONS AND CORRECT ANSWERS (CORRECT VERIFIED SOLUTIONS) NEWEST UPDATED VERSION

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Champions Real Estate Exam: Law of Agency UPDATED
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2024 Exam Questions and CORRECT Answers
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This person hires an agent - CORRECT ANSWER
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>>>>The Principal g




The agent works on behalf of this person -
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CORRECT ANSWER >>>>the client (principal)
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This type of agency allows for the greatest range of
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authority - CORRECT ANSWER >>>>Universal
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This is provided to the agent when there is written
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documentation that the agency relationship exists g g g g g



. - CORRECT ANSWER
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>>>>Express authority g

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This is the most limited of all the agency relationships
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- CORRECT ANSWER >>>>Special agency
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This type of agency is created when a 3rd party beli
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eves that an agent has authority that has NOT been
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granted by a principal - CORRECT ANSWER
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>>>>Agency by Estoppel g g




This type of agency is created when actions lead a
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nother person to assume that one is an agent (Exa
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mple-
you have a key to neighbors home and show the p
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roperty) - CORRECT ANSWER g g g



>>>>Ostensible Agency g




If a buyer hasn't signed a buyer's rep agreement, th
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en who is representing the buyer? -
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gCORRECT ANSWER >>>>No one g g g




This establishes a relationship with a broker -
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CORRECT ANSWER >>>>The Buyer/Tenant Represen
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tation agreement g

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This can be written or oral - CORRECT ANSWER
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>>>>Disclosure of Representation g g




These are required to place their own selfish interest
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s behind that of their clients. -
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CORRECT ANSWER >>>>Fiduciaries
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A licensee isn't required to provide the IABS when.
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.. -g



gCORRECT ANSWER >>>>the licensee meets with a
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party that is already represented
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A broker is obligated to treat who honestly? -
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CORRECT ANSWER >>>>client, customer, and
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agents

Broker must have written consent to act as... -
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CORRECT ANSWER >>>>an intermediary
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IABS form is the property of... -
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gCORRECT ANSWER >>>>TREC g g




Broker Bob is the broker/owner of ABC Realty. Agent
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Bill at ABC Realty is a listing agent. Agent
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Sue, also at ABC Realty, is working with a buyer who
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is being represented by the firm. Agent Sue's buyer
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wants to purchase Agent Bill's listing
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In the above transaction, Broker Bob will: -
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gCORRECT ANSWER >>>>Remain neutral and refrai g g g g g



n from providing advice and opinion to either part
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y

The IABS should contain - CORRECT ANSWER
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>>>>How the broker will be compensated g g g g g




Broker Steve, having no agents, is a solo practition
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er. He has a client buyer that wants to purchase on
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e of his listings. The process that Broker Steve mus
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t use is: - CORRECT ANSWER
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>>>>Intermediary without appointments g g




A fiduciary relationship is based on -
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CORRECT ANSWER >>>>trust
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Agent Joe at ABC Realty has a listing. Agent Sean at
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City Realty has a buyer who wishes to
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