AYPO Real Estate Law of Agency Final 2026 Exam Review || A+
Graded.
Real estate agents are considered to have which kind relationship with clients? correct answers A
fiduciary relationship
Acting as which of the following is a violation of The Real Estate License Act? correct answers
Acting as a broker without possessing a valid license issued by the Texas Real Estate
Commission
Which of the following is a reason to study the aspects of agency and agency law? correct
answers 1. Agents who are well versed in the aspects of the agency roles can project an aura of
confidence that can calm a nervous client
2. Agents who follow the law are less prone to being held liable for harm suffered by clients or
customers
3. Agents who follow the law have a better reputation with the public
A licensee who is representing a buyer is required to treat which of the following in an honest
and fair manner? correct answers 1. The seller's agent
2. The seller
3. The buyer
Brokers have which of the following with a client? correct answers Privity of contract
True or False: Apparent authority is expressly detailed in the contract that establishes the agency
relationship. correct answers FALSE
A principal becomes disabled and gives authority to an agent to act on behalf of the principal in
nearly all circumstances. This type of agent is... correct answers a universal agent.
Which one of the following is not one of the commonly recognized fiduciary duties? correct
answers Punctuality
According to Section 1101.558 of TRELA, which of the following parties must be provided with
a disclosure when the first instance of contact occurs? correct answers 1. Another licensee who
represents another party to the transaction
2. Another party to the transaction
What is the term for a duty owed by an agent to someone who is not the principal party? correct
answers Non-fiduciary duty
The duty of a seller's agent to be loyal to the _______ trumps the duty to be forthright with
the_______. correct answers seller / buyer
What is the term for a person or organization that a person interacts with while acting as an agent
for a principal party? correct answers Third party
, What is private information? correct answers information about a person which is not public
knowledge but which will most likely not result in identity theft if it is revealed
What is the name of the form created by TREC to help sellers meet the requirements of Section
5.008 of the Property Code? correct answers The Seller's Disclosure of Property Condition
Who has the right to choose whether to disclose non-material stigmas related to a property being
sold? correct answers The seller
Which of the following is a type of listing agreement? correct answers 1. Exclusive Right-to-Sell
2. Open
3. Net
What is the term for a transaction in which licensees from the same brokerage represent both the
buyer and seller? correct answers In-house sale
A seller who has established a listing contract with a broker benefits from the broker's... correct
answers 1.experience.
2.knowledge.
3.access to resources possessed by the brokerage.
An agency agreement between a supervising broker and their selling client generally takes a
written form as which of the following? correct answers A listing agreement.
When is a licensee required to provide a seller with a written statement which contains the
disclosure describing services which may be expected from an agent of a seller? correct answers
At the time of first substantive dialogue
True or false: a non-exclusive right to represent buyer-broker agreement requires the buyer to
pay commission to the broker for services rendered. correct answers TRUE
Who does a buyer representation agreement drafted by a sales agent belong to? correct answers
The broker who sponsors that sales agent
All real estate contracts (with the exception of property management contracts) are required to
contain a... correct answers termination date.
When setting up a buyer representation agreement, the licensee must make sure that he or she
does not do which of the following? correct answers Promise to do things that are outside their
area of expertise
Which of the following is not a common way in which the buyer's commission can be paid?
correct answers Paid by the financial institution financing the transaction
Graded.
Real estate agents are considered to have which kind relationship with clients? correct answers A
fiduciary relationship
Acting as which of the following is a violation of The Real Estate License Act? correct answers
Acting as a broker without possessing a valid license issued by the Texas Real Estate
Commission
Which of the following is a reason to study the aspects of agency and agency law? correct
answers 1. Agents who are well versed in the aspects of the agency roles can project an aura of
confidence that can calm a nervous client
2. Agents who follow the law are less prone to being held liable for harm suffered by clients or
customers
3. Agents who follow the law have a better reputation with the public
A licensee who is representing a buyer is required to treat which of the following in an honest
and fair manner? correct answers 1. The seller's agent
2. The seller
3. The buyer
Brokers have which of the following with a client? correct answers Privity of contract
True or False: Apparent authority is expressly detailed in the contract that establishes the agency
relationship. correct answers FALSE
A principal becomes disabled and gives authority to an agent to act on behalf of the principal in
nearly all circumstances. This type of agent is... correct answers a universal agent.
Which one of the following is not one of the commonly recognized fiduciary duties? correct
answers Punctuality
According to Section 1101.558 of TRELA, which of the following parties must be provided with
a disclosure when the first instance of contact occurs? correct answers 1. Another licensee who
represents another party to the transaction
2. Another party to the transaction
What is the term for a duty owed by an agent to someone who is not the principal party? correct
answers Non-fiduciary duty
The duty of a seller's agent to be loyal to the _______ trumps the duty to be forthright with
the_______. correct answers seller / buyer
What is the term for a person or organization that a person interacts with while acting as an agent
for a principal party? correct answers Third party
, What is private information? correct answers information about a person which is not public
knowledge but which will most likely not result in identity theft if it is revealed
What is the name of the form created by TREC to help sellers meet the requirements of Section
5.008 of the Property Code? correct answers The Seller's Disclosure of Property Condition
Who has the right to choose whether to disclose non-material stigmas related to a property being
sold? correct answers The seller
Which of the following is a type of listing agreement? correct answers 1. Exclusive Right-to-Sell
2. Open
3. Net
What is the term for a transaction in which licensees from the same brokerage represent both the
buyer and seller? correct answers In-house sale
A seller who has established a listing contract with a broker benefits from the broker's... correct
answers 1.experience.
2.knowledge.
3.access to resources possessed by the brokerage.
An agency agreement between a supervising broker and their selling client generally takes a
written form as which of the following? correct answers A listing agreement.
When is a licensee required to provide a seller with a written statement which contains the
disclosure describing services which may be expected from an agent of a seller? correct answers
At the time of first substantive dialogue
True or false: a non-exclusive right to represent buyer-broker agreement requires the buyer to
pay commission to the broker for services rendered. correct answers TRUE
Who does a buyer representation agreement drafted by a sales agent belong to? correct answers
The broker who sponsors that sales agent
All real estate contracts (with the exception of property management contracts) are required to
contain a... correct answers termination date.
When setting up a buyer representation agreement, the licensee must make sure that he or she
does not do which of the following? correct answers Promise to do things that are outside their
area of expertise
Which of the following is not a common way in which the buyer's commission can be paid?
correct answers Paid by the financial institution financing the transaction
