Agency Exam Practice UPDATED
QUESTIONS AND CORRECT ANSWERS
Agent Phillip received an earnest money check payable to the title company from a buyer. Five days
later he found the check under some paperwork on his desk. He deposited the check immediately.
Is this a violation of TRELA or not? - CORRECT ANSWER Violation of TRELA
When was TRELA created? - CORRECT ANSWER 1939
When was TREC created? - CORRECT ANSWER 1949
Agent Dirk negotiated a transaction where the buyer wrote a $2000 earnest money deposit. The
earnest money was deposited in Dirk's escrow account. The transaction fell through, and feeling sorry
for the buyer, he refunded the earnest money without the consent of the seller. Is this a violation of
TRELA or not? - CORRECT ANSWER Violation of TRELA
Part of the licensing process is to determine, what?
a. Motivation for success
b. Moral Character
c.Understanding of Sales
d. Income potential - CORRECT ANSWER b. Moral Character
A broker may pay a fee to
a. An Attorney
b. Another Broker's Sales Agent
c. An unlicensed person as a referral
d. Another Broker - CORRECT ANSWER d. Another Broker
Agent Dwayne discovered that a great way to get more listings was to tell homeowners in the
neighborhood that a huge commercial project was about to commence that would seriously devalue
property in the subdivision. The claim was false, but it did result in a number of listings. Is this a
violation of TRELA or not? - CORRECT ANSWER Violation of TRELA
,Agent Willard got a call from a promising prospective buyer on one of the properties that he had put
signs on without the owner's knowledge. He went ahead and began negotiating a sale knowing that
the seller had not even put it on the market. His rationale was that "Everything is for sale at some
price." Is this a violation of TRELA or not? - CORRECT ANSWER Violation of TRELA
Agent Maggie was showing properties to a buyer who inquired about the racial makeup of the
neighborhood. She declined to respond to the inquiry.Is this a violation of TRELA or not? -
CORRECT ANSWER NOT a violation of TRELA
A person licensed by the Texas Real Estate Commission (TREC) to act as a broker or sales agent in a
real estate transaction. - CORRECT ANSWER License holder
A license holder not associated with the seller's broker, but who is representing the seller through a
cooperative agreement, often through membership in a Multiple Listing Service (MLS), with the
seller's broker. - CORRECT ANSWER Subagent
A broker selling the listing of another broker. A cooperative broker may complete the transaction as a
subagent of the listing broker, or may represent the buyers under an agency agreement; he also known
as the other broker. - CORRECT ANSWER Cooperative Broker
An individual holding a broker's license issued by TREC. Brokers may act independently in
conducting real estate transactions, or may engage other broker or sales agent license holders to
represent them in the conduct of their real estate business. - CORRECT ANSWER Broker
License Holder
A sales agent or broker license holder associated with and conducting business as an agent of his or
her sponsoring broker. - CORRECT ANSWER Sales Associate
A broker representing the seller in a real estate transaction, also referred to as a Seller's Broker,
Listing Broker, or Listing Agent. - CORRECT ANSWER Seller's Agent
Agent Bill is instructed to arrange for lawn mowing for a seller who has moved out of state. Bill pays
for the mowing and submits an invoice to the seller. Choose the Principal's Duty:
a. Reimbursement
b. Compensation
, c. Indemnification
d. Performance - CORRECT ANSWER a. Reimbursement
Broker Sam sells a property for Seller Sue. At closing Broker Sam is to be paid a commission. Choose
the Principal's Duty:
a. Reimbursement
b. Compensation
c. Indemnification
d. Performance - CORRECT ANSWER b. Compensation
Seller Wanda lists a property with Broker Susan. Wanda completes a seller's disclosure indicating that
there are no defects. After closing, the buyer discovers major termite damage and considers a lawsuit.
Wanda considers implicating the broker in the misrepresentation. Choose the Principal's Duty:
a. Reimbursement
b. Compensation
c. Indemnification
d. Performance - CORRECT ANSWER c. Indemnification
Seller Jane lists with Broker Bob. The house is never in showing condition, and Jane continually tells
Bob that "Now is not a good time to show". Choose the Principal's Duty:
a. Reimbursement
b. Compensation
c. Indemnification
d. Performance - CORRECT ANSWER d. Performance
TREC's role is to administer the provisions of
a. The License Act
b. Agency Law
c. TREC's Rules
d. Disclosure - CORRECT ANSWER a. The License Act
QUESTIONS AND CORRECT ANSWERS
Agent Phillip received an earnest money check payable to the title company from a buyer. Five days
later he found the check under some paperwork on his desk. He deposited the check immediately.
Is this a violation of TRELA or not? - CORRECT ANSWER Violation of TRELA
When was TRELA created? - CORRECT ANSWER 1939
When was TREC created? - CORRECT ANSWER 1949
Agent Dirk negotiated a transaction where the buyer wrote a $2000 earnest money deposit. The
earnest money was deposited in Dirk's escrow account. The transaction fell through, and feeling sorry
for the buyer, he refunded the earnest money without the consent of the seller. Is this a violation of
TRELA or not? - CORRECT ANSWER Violation of TRELA
Part of the licensing process is to determine, what?
a. Motivation for success
b. Moral Character
c.Understanding of Sales
d. Income potential - CORRECT ANSWER b. Moral Character
A broker may pay a fee to
a. An Attorney
b. Another Broker's Sales Agent
c. An unlicensed person as a referral
d. Another Broker - CORRECT ANSWER d. Another Broker
Agent Dwayne discovered that a great way to get more listings was to tell homeowners in the
neighborhood that a huge commercial project was about to commence that would seriously devalue
property in the subdivision. The claim was false, but it did result in a number of listings. Is this a
violation of TRELA or not? - CORRECT ANSWER Violation of TRELA
,Agent Willard got a call from a promising prospective buyer on one of the properties that he had put
signs on without the owner's knowledge. He went ahead and began negotiating a sale knowing that
the seller had not even put it on the market. His rationale was that "Everything is for sale at some
price." Is this a violation of TRELA or not? - CORRECT ANSWER Violation of TRELA
Agent Maggie was showing properties to a buyer who inquired about the racial makeup of the
neighborhood. She declined to respond to the inquiry.Is this a violation of TRELA or not? -
CORRECT ANSWER NOT a violation of TRELA
A person licensed by the Texas Real Estate Commission (TREC) to act as a broker or sales agent in a
real estate transaction. - CORRECT ANSWER License holder
A license holder not associated with the seller's broker, but who is representing the seller through a
cooperative agreement, often through membership in a Multiple Listing Service (MLS), with the
seller's broker. - CORRECT ANSWER Subagent
A broker selling the listing of another broker. A cooperative broker may complete the transaction as a
subagent of the listing broker, or may represent the buyers under an agency agreement; he also known
as the other broker. - CORRECT ANSWER Cooperative Broker
An individual holding a broker's license issued by TREC. Brokers may act independently in
conducting real estate transactions, or may engage other broker or sales agent license holders to
represent them in the conduct of their real estate business. - CORRECT ANSWER Broker
License Holder
A sales agent or broker license holder associated with and conducting business as an agent of his or
her sponsoring broker. - CORRECT ANSWER Sales Associate
A broker representing the seller in a real estate transaction, also referred to as a Seller's Broker,
Listing Broker, or Listing Agent. - CORRECT ANSWER Seller's Agent
Agent Bill is instructed to arrange for lawn mowing for a seller who has moved out of state. Bill pays
for the mowing and submits an invoice to the seller. Choose the Principal's Duty:
a. Reimbursement
b. Compensation
, c. Indemnification
d. Performance - CORRECT ANSWER a. Reimbursement
Broker Sam sells a property for Seller Sue. At closing Broker Sam is to be paid a commission. Choose
the Principal's Duty:
a. Reimbursement
b. Compensation
c. Indemnification
d. Performance - CORRECT ANSWER b. Compensation
Seller Wanda lists a property with Broker Susan. Wanda completes a seller's disclosure indicating that
there are no defects. After closing, the buyer discovers major termite damage and considers a lawsuit.
Wanda considers implicating the broker in the misrepresentation. Choose the Principal's Duty:
a. Reimbursement
b. Compensation
c. Indemnification
d. Performance - CORRECT ANSWER c. Indemnification
Seller Jane lists with Broker Bob. The house is never in showing condition, and Jane continually tells
Bob that "Now is not a good time to show". Choose the Principal's Duty:
a. Reimbursement
b. Compensation
c. Indemnification
d. Performance - CORRECT ANSWER d. Performance
TREC's role is to administer the provisions of
a. The License Act
b. Agency Law
c. TREC's Rules
d. Disclosure - CORRECT ANSWER a. The License Act
