Law of Agency Final Exam Review 2026
Questions and Answers
Most lawsuits involve issues of who did or did not represent whom. The number of
lawsuits is:
A. Increasing
B. Decreasing
C. Stabilizing over the last several years
D. Broker lawsuits are not allowed. - Correct answer-A. Increasing
The correct answer is A. A broker is more likely to be sued because he failed to
make it clear to all parties who he represented as a client.
The broker working with a buyer customer and representing the seller through the
seller's
broker is a:
A. Buyer
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,B. Seller
C. Subagent
D. Intermediary - Correct answer-C. Subagent
For subagency to exist there must be two sponsoring brokers. One of the brokers
has a seller client and the other broker must have a buyer customer.
All parties to the transaction must be treated honestly and fairly, but a fiduciary
relationship is
owed to the:
A. Customer
B. Client
C. Everyone
D. No one - Correct answer-B. Client
A fiduciary relationship is a relationship of trust. The broker must always put the
client's interest above the broker's interest.
The TRELA does not require disclosure if a death occurred on a property:
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,A. By natural causes
B. By suicide
C. In an accident unrelated to the condition of the property
D. All of the above - Correct answer-D. All of the above
A murder on the property and an accidental death resulting from an accident
related to a condition of the property must be disclosed.
Something that affects the property or the health of the residents of the property is
called a(n):
A. Psychological stigma
B. Exception
C. Physical stigma
D. None of the above - Correct answer-C. Physical stigma
A psychological stigma does not affect the physical condition of the property, but it
can affect the value of the property.
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, Information about Brokerage Services must be given to potential buyers, sellers,
tenants, and
landlords:
A. At the time of first meeting
B. After the listing is taken
C. At the closing
D. At the first substantive dialogue about a property - Correct answer-D. At the
first substantive dialogue about a property
Information About Brokerage Services gives information concerning the ways a
broker can represent a person. It gives information about buyer's agency, seller's
agency, intermediary, and subagency.
How many companies are required in a subagency relationship?
A. 13
B. 9
C. 4
D. 2 - Correct answer-D. 2
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Questions and Answers
Most lawsuits involve issues of who did or did not represent whom. The number of
lawsuits is:
A. Increasing
B. Decreasing
C. Stabilizing over the last several years
D. Broker lawsuits are not allowed. - Correct answer-A. Increasing
The correct answer is A. A broker is more likely to be sued because he failed to
make it clear to all parties who he represented as a client.
The broker working with a buyer customer and representing the seller through the
seller's
broker is a:
A. Buyer
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,B. Seller
C. Subagent
D. Intermediary - Correct answer-C. Subagent
For subagency to exist there must be two sponsoring brokers. One of the brokers
has a seller client and the other broker must have a buyer customer.
All parties to the transaction must be treated honestly and fairly, but a fiduciary
relationship is
owed to the:
A. Customer
B. Client
C. Everyone
D. No one - Correct answer-B. Client
A fiduciary relationship is a relationship of trust. The broker must always put the
client's interest above the broker's interest.
The TRELA does not require disclosure if a death occurred on a property:
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,A. By natural causes
B. By suicide
C. In an accident unrelated to the condition of the property
D. All of the above - Correct answer-D. All of the above
A murder on the property and an accidental death resulting from an accident
related to a condition of the property must be disclosed.
Something that affects the property or the health of the residents of the property is
called a(n):
A. Psychological stigma
B. Exception
C. Physical stigma
D. None of the above - Correct answer-C. Physical stigma
A psychological stigma does not affect the physical condition of the property, but it
can affect the value of the property.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, Information about Brokerage Services must be given to potential buyers, sellers,
tenants, and
landlords:
A. At the time of first meeting
B. After the listing is taken
C. At the closing
D. At the first substantive dialogue about a property - Correct answer-D. At the
first substantive dialogue about a property
Information About Brokerage Services gives information concerning the ways a
broker can represent a person. It gives information about buyer's agency, seller's
agency, intermediary, and subagency.
How many companies are required in a subagency relationship?
A. 13
B. 9
C. 4
D. 2 - Correct answer-D. 2
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