Law of Agency Champions Exam 60 Questions with Answers Recently Updated

Law of Agency Champions Exam 60 Questions with Answers Recently Updated 1. The failure to remove an advertisement within a reasonable amount of time may be considered deceptive or misleading. - ANSWER true 2. Usually, a defamation claim requires evidence of: - ANSWER A false statement made to someone other than the person who is allegedly defamed, A false statement, Damage to the person allegedly defamed by a false statement 3. A broker is representing both sides in an in-house transaction. In this case, the broker is the: - ANSWER intermediary 4. There can be a policies and procedures manual for a real estate agent who is an independent contractor. However, - ANSWER The broker cannot require mandatory compliance 5. A signed employment agreement is necessary to: - ANSWER sue for commission 6. An agent in ABC Realty has a listing that is being sold by a buyer's agent whose license is also with ABC Realty. The broker will most likely: - ANSWER Appoint the associates to represent their parties under intermediary rules 7. The listing that allows the seller to list the property with multiple competing brokers at the same time and to sell the property personally without paying any broker a fee is a(n): - ANSWER open listing 8. An agent creates a (n) ____________________ to give buyers and sellers an indication of the market value of a property. - ANSWER comparative market analysis 9. Agency authority that is the result of the "norm," or what is considered customary, is: - ANSWER Implied authority 10. A listing is terminated by any of the following, EXCEPT: - ANSWER The p Your company sends out a memo that there is a mandatory sales meeting this week for the sales agents. - ANSWER The IRS rule on independent contractor status could be violated. 11. Only a broker may earn a commission and only a broker may sue to collect a commission. - ANSWER true 12. Confidential information between client and agent is: - ANSWER Kept confidential forever 13. Which of the following requirements must be satisfied if a broker seeks to enforce payment of a commission? - ANSWER The broker must have a valid real estate license, The broker must have a signed employment agreement with a promise by the client to pay a commission, The broker must be the procuring cause of sale 14. A broker is obligated to treat which of the following fairly? - ANSWER customers, sellers, clients 15. A licensee not associated with the client's broker but who is representing the client through a cooperative agreement with the client's broker is known as a: - ANSWER subagent 16. Which of the following has the authority to suspend or revoke a Texas real estate license? - ANSWER TREC 17. Which of the following is an element of a listing agreement? - ANSWER the agreement to pay a stated commission, usually a percentage of the sales price 18. the IRS considers which of the following a violation of independent contractor status? - ANSWER salesperson is told to work set hours, guaranteed a monthly minimum wage, has his licensing fees paid by the broker 19. the TAR buyer representation agreement in or text book: - ANSWER authorizes intermediary, authorizes the buyer to give the agent complete loyalty, establishes an exclusive market area 20. The amendments in 1996 to the License Act state that an agent is not liable for a misrepresentation or concealment of material fact by a party if: - ANSWER The licensee did not know of the falsity of the misrepresentation 21. One who hires an agent to represent him is called a: - ANSWER principal 22. It is always a good idea to have: - ANSWER The seller fill out the Seller's Disclosure Notice 23. A real estate brokerage firm that practices buyer agency only has a lot of intermediary transactions. - ANSWER false 24. Which of the following is a statutory defense for a lawsuit brought about by DTPA? - ANSWER Written information obtained from a government record 25. A licensee is not liable for a misrepresentation or a concealment of a material fact made by a party to a real estate transaction if the seller did not disclose it to the agent. - ANSWER true 26. Actual awareness of a falsity, deception, or unfairness of an act under DTPA is known as: - ANSWER knowingly 27. The TREC was established in: - ANSWER 1949 28. an exemption to using the Information About Brokerage Services form is: - ANSWER a lease for not more than 1 year 29. listings can be terminated at any time by mutual agreement - ANSWER true 30. fiduciaries are: - ANSWER Held to the highest degree of good faith, Required to exclude selfish interest, Require to make disclosures of all relevant facts 31. According to TREC advertising rules, the definition of advertisement includes all of the following, EXCEPT: - ANSWER Communication from a licensee to his or her client