Law of Agency - Champions School of Real Estate REAL EXAM 2025
Study online at https://quizlet.com/_hm0kx3
The principal is also known as client
a relationship founded on trust and con-
fiduciary relationship
fidence
Exists when one person (the agent) acts
Agency Relationship for, or on
behalf of another person (the principal).
is the one who hires and gives authority
the principal
to the agent
Was passed 1939. The purpose is to
Texas Real Estate License Act TRELA protect the public against unscrupulous
brokers and sales agents.
Was created to enforce and administer
TRELA in 1949. The purpose of this act
Texas Real Estate Commission TREC
is to protect the public against unscrupu-
lous brokers and sales agents.
A licensed broker may not pay a commis-
sion to or otherwise compensate a per- a license holder or a real estate broker
son directly or indirectly for performing licensed in another state
an act of a broker unless the person is...
TRELA may suspend or revoke a license
or take other disciplinary action if the conduct that is dishonest or in bad faith
license holder, while engaged in real es- or that demonstrates untrustworthiness
tate brokerage engages in...
a broker works FOR a client
a broker works WITH a customer
by entering into a buyer representation
how does a buyer become a client
agreement with the broker
A license holder not associated with the
seller's broker, but who is representing
the seller through a cooperative agree-
Subagent
ment, often through membership in a
Multiple Listing Service (MLS), with the
seller's broker.
, Law of Agency - Champions School of Real Estate REAL EXAM 2025
Study online at https://quizlet.com/_hm0kx3
An agency relationship exists when one
person, the _____ acts for, or on behalf agent, principal
of another person, the ______
which of the following is grounds for
splitting commission with a person other
suspension or revocation of license by
than a license holder
TREC?
The commission can deny licensure to
an applicant based on the applicant's moral character
_______________________
exists when actions lead another person
Ostensible Agency
to assume that one is an agent.
Occurs when an agent acts without pri-
Agency by Ratification or authorization, and the principal, upon
learning of this action, accepts it.
When a broker is the owner of a property
that is being sold, or when a broker is
agency coupled with an interest
interested in buying a property, we have
agency coupled with an interest
or rights, may also be a result of "the
Agency Authority norm", or what is considered customary
in the business
an agent's authority to do things not
Implied Authority specifically authorized in order to carry
out express authority
are held to the highest amount of good
faith, are required to exclude all self-
ish interest, are prohibited from putting
themselves in positions where personal
Fiduciaries interest and representative interest will
conflict and must, in any direct dealing
with the principal, make full disclosure of
all relevant facts and give the latter an
opportunity to obtain independent advice
has less authority than the universal
agent. Has the right to represent his or
her principal in a particular type of trans-
Study online at https://quizlet.com/_hm0kx3
The principal is also known as client
a relationship founded on trust and con-
fiduciary relationship
fidence
Exists when one person (the agent) acts
Agency Relationship for, or on
behalf of another person (the principal).
is the one who hires and gives authority
the principal
to the agent
Was passed 1939. The purpose is to
Texas Real Estate License Act TRELA protect the public against unscrupulous
brokers and sales agents.
Was created to enforce and administer
TRELA in 1949. The purpose of this act
Texas Real Estate Commission TREC
is to protect the public against unscrupu-
lous brokers and sales agents.
A licensed broker may not pay a commis-
sion to or otherwise compensate a per- a license holder or a real estate broker
son directly or indirectly for performing licensed in another state
an act of a broker unless the person is...
TRELA may suspend or revoke a license
or take other disciplinary action if the conduct that is dishonest or in bad faith
license holder, while engaged in real es- or that demonstrates untrustworthiness
tate brokerage engages in...
a broker works FOR a client
a broker works WITH a customer
by entering into a buyer representation
how does a buyer become a client
agreement with the broker
A license holder not associated with the
seller's broker, but who is representing
the seller through a cooperative agree-
Subagent
ment, often through membership in a
Multiple Listing Service (MLS), with the
seller's broker.
, Law of Agency - Champions School of Real Estate REAL EXAM 2025
Study online at https://quizlet.com/_hm0kx3
An agency relationship exists when one
person, the _____ acts for, or on behalf agent, principal
of another person, the ______
which of the following is grounds for
splitting commission with a person other
suspension or revocation of license by
than a license holder
TREC?
The commission can deny licensure to
an applicant based on the applicant's moral character
_______________________
exists when actions lead another person
Ostensible Agency
to assume that one is an agent.
Occurs when an agent acts without pri-
Agency by Ratification or authorization, and the principal, upon
learning of this action, accepts it.
When a broker is the owner of a property
that is being sold, or when a broker is
agency coupled with an interest
interested in buying a property, we have
agency coupled with an interest
or rights, may also be a result of "the
Agency Authority norm", or what is considered customary
in the business
an agent's authority to do things not
Implied Authority specifically authorized in order to carry
out express authority
are held to the highest amount of good
faith, are required to exclude all self-
ish interest, are prohibited from putting
themselves in positions where personal
Fiduciaries interest and representative interest will
conflict and must, in any direct dealing
with the principal, make full disclosure of
all relevant facts and give the latter an
opportunity to obtain independent advice
has less authority than the universal
agent. Has the right to represent his or
her principal in a particular type of trans-
