1 Exampromax - Stuvia US 2025/2026
Aceable Agent - Finance Questions and
Answers (100% Correct Answers) Already
Graded A+
Who was the first legislation created to govern the real estate profession in
Texas?
Ans: TEXAS REAL ESTATE LICENSE ACT (TRELA) 1939
Which commission was created to enforce TRELA (it's main purpose)?
Also regulates educational and licensing programs that maintain standards
AND interprets legislation that effects the real estate profession, but these
© 2025 Assignment Expert
are not it's main function.
Ans: TEXAS REAL ESTATE COMMISSION (TREC) 1949
Exampromax - Stuvia US
Who does TREC regulate?
Ans: 1. INSPECTORS
2. EASEMENT/RIGHT OF WAY AGENTS
3. EDUCATION PROVIDERS FOR REAL ESTATE AND INSPECTION
4. DEVELOPERS OF TIMESHARES
5. RESIDENTIAL SERVICE COMPANIES
6. REAL ESTATE AGENTS AND SALES BROKERS
When a principal allows a license holder to act in such a way as to cause a
third party to believe the license holder is the principal's agent?
Ans: OSTENSIBLE AGENCY
Agency imposed by law when it is determined that ostensible agency
existed; used to create legal accountability for the agent or the principal on
whose behalf the agent acted?
Ans: AGENCY BY ESTOPPEL
Created when a license holder acts on behalf of but without prior
authorization of a principal and that principal accepts the license holder's
action after the fact?
Ans: AGENCY BY RATIFICATION
, 2 Exampromax - Stuvia US 2025/2026
When an agent is involved in a real estate transaction with a personal
interest (either for themselves, a family member, or a business interest)?
Ans: AGENCY COUPLED WITH INTEREST
Actions taken by an agent for which they have permission whether given
through express or implied authority by a principal?
Ans: AGENCY BY ACTUAL AUTHORITY
When a principal gives an agent authority to act on their behalf by mutual
consent either by written or oral agreement?
Ans: EXPRESS AUTHORITY
© 2025 Assignment Expert
When an agent takes action that are considered customary for the
profession in order to represent their agents interests?
Exampromax - Stuvia US
Ans: IMPLIED AUTHORITY
A form of agency relationship in which agents are limited in scope and are
only authorized to perform acts permitted by their principal (Broker/Client)
Ans: SPECIAL AGENCY
A form of agency relationship in which the principal is responsible for the
acts of their agent as long as the agent is acting within the scope of their
duties (Broker/ Sales Agent)
Ans: GENERAL AGENCY
A form of agency relationship in which agents have a very broad scope of
power to act on behalf of the principal. Agents have the general power of
attorney (Child/ Parent)
Ans: UNIVERSAL AGENCY
What are non-fiduciary duties?
Ans: HONESTY & FAIRNESS
License holders must advise buyers to do what 2 things?
Aceable Agent - Finance Questions and
Answers (100% Correct Answers) Already
Graded A+
Who was the first legislation created to govern the real estate profession in
Texas?
Ans: TEXAS REAL ESTATE LICENSE ACT (TRELA) 1939
Which commission was created to enforce TRELA (it's main purpose)?
Also regulates educational and licensing programs that maintain standards
AND interprets legislation that effects the real estate profession, but these
© 2025 Assignment Expert
are not it's main function.
Ans: TEXAS REAL ESTATE COMMISSION (TREC) 1949
Exampromax - Stuvia US
Who does TREC regulate?
Ans: 1. INSPECTORS
2. EASEMENT/RIGHT OF WAY AGENTS
3. EDUCATION PROVIDERS FOR REAL ESTATE AND INSPECTION
4. DEVELOPERS OF TIMESHARES
5. RESIDENTIAL SERVICE COMPANIES
6. REAL ESTATE AGENTS AND SALES BROKERS
When a principal allows a license holder to act in such a way as to cause a
third party to believe the license holder is the principal's agent?
Ans: OSTENSIBLE AGENCY
Agency imposed by law when it is determined that ostensible agency
existed; used to create legal accountability for the agent or the principal on
whose behalf the agent acted?
Ans: AGENCY BY ESTOPPEL
Created when a license holder acts on behalf of but without prior
authorization of a principal and that principal accepts the license holder's
action after the fact?
Ans: AGENCY BY RATIFICATION
, 2 Exampromax - Stuvia US 2025/2026
When an agent is involved in a real estate transaction with a personal
interest (either for themselves, a family member, or a business interest)?
Ans: AGENCY COUPLED WITH INTEREST
Actions taken by an agent for which they have permission whether given
through express or implied authority by a principal?
Ans: AGENCY BY ACTUAL AUTHORITY
When a principal gives an agent authority to act on their behalf by mutual
consent either by written or oral agreement?
Ans: EXPRESS AUTHORITY
© 2025 Assignment Expert
When an agent takes action that are considered customary for the
profession in order to represent their agents interests?
Exampromax - Stuvia US
Ans: IMPLIED AUTHORITY
A form of agency relationship in which agents are limited in scope and are
only authorized to perform acts permitted by their principal (Broker/Client)
Ans: SPECIAL AGENCY
A form of agency relationship in which the principal is responsible for the
acts of their agent as long as the agent is acting within the scope of their
duties (Broker/ Sales Agent)
Ans: GENERAL AGENCY
A form of agency relationship in which agents have a very broad scope of
power to act on behalf of the principal. Agents have the general power of
attorney (Child/ Parent)
Ans: UNIVERSAL AGENCY
What are non-fiduciary duties?
Ans: HONESTY & FAIRNESS
License holders must advise buyers to do what 2 things?
