LAW OF AGENCY PRACTICE SOLUTION
TESTED QUESTIONS AND ANSWERS
GRADED A+
●● Expressed Agency
Answer: a principal appoints an agent and the agent accepts; the
agreement does not have to be written to be valid
●● In which year did the National Association of REALTORS create the
Code of Ethics for the real estate industry?
Answer: 1913
●● Only a _______ may technically enter into an agency relationship
with the buyer or seller.
Answer: broker
●● In an agency relationship, the ________ authorizes the agent to
represent his or her interests.
Answer: principal
●● In the relationship with a buyer or a seller, a real estate agent is
usually a ___________.
Answer: special agent
,●● The only requirement for the formation of an agency relationship is
the _______________________.
Answer: consent of the agent and the principal
●● Agency relationships are also generally _______________.
Answer: fiduciary relationships
●● A __________________ is generally considered the safest way to
enter into an agency relationship.
Answer: written agency agreement
●● If a principal appoints an agent and the agent accepts, an agency
relationship has been formed by ______________.
Answer: express agreement
●● An ____________________ arises when a party assumes consent to
the relationship based solely upon inference formed from
communication with the other party.
Answer: implied agency relationship
●● A broker negotiates between the parties in a transaction and for that
purpose may act as an agent of the parties.
Answer: Intermediary
, ●● A broker or salesperson licensed under this chapter.
Answer: License holder
●● Any interest in real property, not including an interest given as
security for the performance of an obligation.
Answer: Real estate
●● A person associated with a licensed broker for the purpose of
performing the acts of a broker.
Answer: Salesperson
●● A license holder represents a principal through cooperation with and
the consent of the principal's broker.
Answer: Subagent
●● Fiduciary duties are not just ethical or moral characteristics:they are
the law of agency. What duties are owed to the principal?
Answer: Loyalty, Obedience, Confidentiality, Reasonable Care &
Accounting
●● When a principal agrees to an action performed by an agent that is
outside the scope of the agent's authority, it is said to be an agency
created by __________.
TESTED QUESTIONS AND ANSWERS
GRADED A+
●● Expressed Agency
Answer: a principal appoints an agent and the agent accepts; the
agreement does not have to be written to be valid
●● In which year did the National Association of REALTORS create the
Code of Ethics for the real estate industry?
Answer: 1913
●● Only a _______ may technically enter into an agency relationship
with the buyer or seller.
Answer: broker
●● In an agency relationship, the ________ authorizes the agent to
represent his or her interests.
Answer: principal
●● In the relationship with a buyer or a seller, a real estate agent is
usually a ___________.
Answer: special agent
,●● The only requirement for the formation of an agency relationship is
the _______________________.
Answer: consent of the agent and the principal
●● Agency relationships are also generally _______________.
Answer: fiduciary relationships
●● A __________________ is generally considered the safest way to
enter into an agency relationship.
Answer: written agency agreement
●● If a principal appoints an agent and the agent accepts, an agency
relationship has been formed by ______________.
Answer: express agreement
●● An ____________________ arises when a party assumes consent to
the relationship based solely upon inference formed from
communication with the other party.
Answer: implied agency relationship
●● A broker negotiates between the parties in a transaction and for that
purpose may act as an agent of the parties.
Answer: Intermediary
, ●● A broker or salesperson licensed under this chapter.
Answer: License holder
●● Any interest in real property, not including an interest given as
security for the performance of an obligation.
Answer: Real estate
●● A person associated with a licensed broker for the purpose of
performing the acts of a broker.
Answer: Salesperson
●● A license holder represents a principal through cooperation with and
the consent of the principal's broker.
Answer: Subagent
●● Fiduciary duties are not just ethical or moral characteristics:they are
the law of agency. What duties are owed to the principal?
Answer: Loyalty, Obedience, Confidentiality, Reasonable Care &
Accounting
●● When a principal agrees to an action performed by an agent that is
outside the scope of the agent's authority, it is said to be an agency
created by __________.
