Law of Agency – Champions Exam
Questions With Correct Answers
Which of the following has the authority to suspend or revoke a Texas real estate
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license? - CORRECT ANSWER✔✔-TREC
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Which of the following is an element of a listing agreement? - CORRECT
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ANSWER✔✔-the agreement to pay a stated commission, usually a percentage of
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the sales price
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the IRS considers which of the following a violation of independent contractor
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status? - CORRECT ANSWER✔✔-salesperson is told to work set hours, guaranteed
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a monthly minimum wage, has his licensing fees paid by the broker
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the TAR buyer representation agreement in or text book: - CORRECT
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ANSWER✔✔-authorizes intermediary, authorizes the buyer to give the agent | | | | | | | | |
complete loyalty, establishes an exclusive market area
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The amendments in 1996 to the License Act state that an agent is not liable for a
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misrepresentation or concealment of material fact by a party if: - CORRECT
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ANSWER✔✔-The licensee did not know of the falsity of the misrepresentation
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One who hires an agent to represent him is called a: - CORRECT ANSWER✔✔-
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principal
, It is always a good idea to have: - CORRECT ANSWER✔✔-The seller fill out the
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Seller's Disclosure Notice
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A real estate brokerage firm that practices buyer agency only has a lot of
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intermediary transactions. - CORRECT ANSWER✔✔-false | | | |
Which of the following is a statutory defense for a lawsuit brought about by
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DTPA? - CORRECT ANSWER✔✔-Written information obtained from a government
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record
A licensee is not liable for a misrepresentation or a concealment of a material fact
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made by a party to a real estate transaction if the seller did not disclose it to the
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agent. - CORRECT ANSWER✔✔-true
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Actual awareness of a falsity, deception, or unfairness of an act under DTPA is
| | | | | | | | | | | | | |
known as: - CORRECT ANSWER✔✔-knowingly
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The TREC was established in: - CORRECT ANSWER✔✔-1949
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an exemption to using the Information About Brokerage Services form is: -
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CORRECT ANSWER✔✔-a lease for not more than 1 year
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listings can be terminated at any time by mutual agreement - CORRECT
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ANSWER✔✔-true
Questions With Correct Answers
Which of the following has the authority to suspend or revoke a Texas real estate
| | | | | | | | | | | | | | |
license? - CORRECT ANSWER✔✔-TREC
| | |
Which of the following is an element of a listing agreement? - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-the agreement to pay a stated commission, usually a percentage of
| | | | | | | | | | |
the sales price
| |
the IRS considers which of the following a violation of independent contractor
| | | | | | | | | | | |
status? - CORRECT ANSWER✔✔-salesperson is told to work set hours, guaranteed
| | | | | | | | | |
a monthly minimum wage, has his licensing fees paid by the broker
| | | | | | | | | | | |
the TAR buyer representation agreement in or text book: - CORRECT
| | | | | | | | | | |
ANSWER✔✔-authorizes intermediary, authorizes the buyer to give the agent | | | | | | | | |
complete loyalty, establishes an exclusive market area
| | | | | |
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: - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-The licensee did not know of the falsity of the misrepresentation
| | | | | | | | | |
One who hires an agent to represent him is called a: - CORRECT ANSWER✔✔-
| | | | | | | | | | | | |
principal
, It is always a good idea to have: - CORRECT ANSWER✔✔-The seller fill out the
| | | | | | | | | | | | | | |
Seller's Disclosure Notice
| |
A real estate brokerage firm that practices buyer agency only has a lot of
| | | | | | | | | | | | | |
intermediary transactions. - CORRECT ANSWER✔✔-false | | | |
Which of the following is a statutory defense for a lawsuit brought about by
| | | | | | | | | | | | | |
DTPA? - CORRECT ANSWER✔✔-Written information obtained from a government
| | | | | | | | |
record
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. - CORRECT ANSWER✔✔-true
| | |
Actual awareness of a falsity, deception, or unfairness of an act under DTPA is
| | | | | | | | | | | | | |
known as: - CORRECT ANSWER✔✔-knowingly
| | | |
The TREC was established in: - CORRECT ANSWER✔✔-1949
| | | | | | |
an exemption to using the Information About Brokerage Services form is: -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-a lease for not more than 1 year
| | | | | | | |
listings can be terminated at any time by mutual agreement - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-true
