Law of Agency - Champions School of
Real Estate Quiz Answered 2023
The principal is also known as
client
fiduciary relationship
a relationship founded on trust and confidence
Agency Relationship
Exists when one person (the agent) acts for, or on
behalf of another person (the principal).
the principal
is the one who hires and gives authority to the agent
Texas Real Estate License Act TRELA
Was passed 1939. The purpose is to protect the public against unscrupulous brokers
and sales agents.
Texas Real Estate Commission TREC
Was created to enforce and administer TRELA in 1949. The purpose of this act is to
protect the public against unscrupulous brokers and sales agents.
A licensed broker may not pay a commission to or otherwise compensate a
person directly or indirectly for performing an act of a broker unless the person
is...
a license holder or a real estate broker licensed in another state
TRELA may suspend or revoke a license or take other disciplinary action if the
license holder, while engaged in real estate brokerage engages in...
conduct that is dishonest or in bad faith or that demonstrates untrustworthiness
a broker works FOR
a client
a broker works WITH
a customer
, how does a buyer become a client
by entering into a buyer representation agreement with the broker
Subagent
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.
An agency relationship exists when one person, the _____ acts for, or on behalf
of another person, the ______
agent, principal
which of the following is grounds for suspension or revocation of license by
TREC?
splitting commission with a person other than a license holder
The commission can deny licensure to an applicant based on the applicant's
_______________________
moral character
Ostensible Agency
exists when actions lead another person to assume that one is an agent.
Agency by Ratification
Occurs when an agent acts without prior authorization, and the principal, upon learning
of this action, accepts it.
agency coupled with an interest
When a broker is the owner of a property that is being sold, or when a broker is
interested in buying a property, we have agency coupled with an interest
Agency Authority
or rights, may also be a result of "the norm", or what is considered customary in the
business
Implied Authority
an agent's authority to do things not specifically authorized in order to carry out express
authority
Fiduciaries
Real Estate Quiz Answered 2023
The principal is also known as
client
fiduciary relationship
a relationship founded on trust and confidence
Agency Relationship
Exists when one person (the agent) acts for, or on
behalf of another person (the principal).
the principal
is the one who hires and gives authority to the agent
Texas Real Estate License Act TRELA
Was passed 1939. The purpose is to protect the public against unscrupulous brokers
and sales agents.
Texas Real Estate Commission TREC
Was created to enforce and administer TRELA in 1949. The purpose of this act is to
protect the public against unscrupulous brokers and sales agents.
A licensed broker may not pay a commission to or otherwise compensate a
person directly or indirectly for performing an act of a broker unless the person
is...
a license holder or a real estate broker licensed in another state
TRELA may suspend or revoke a license or take other disciplinary action if the
license holder, while engaged in real estate brokerage engages in...
conduct that is dishonest or in bad faith or that demonstrates untrustworthiness
a broker works FOR
a client
a broker works WITH
a customer
, how does a buyer become a client
by entering into a buyer representation agreement with the broker
Subagent
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.
An agency relationship exists when one person, the _____ acts for, or on behalf
of another person, the ______
agent, principal
which of the following is grounds for suspension or revocation of license by
TREC?
splitting commission with a person other than a license holder
The commission can deny licensure to an applicant based on the applicant's
_______________________
moral character
Ostensible Agency
exists when actions lead another person to assume that one is an agent.
Agency by Ratification
Occurs when an agent acts without prior authorization, and the principal, upon learning
of this action, accepts it.
agency coupled with an interest
When a broker is the owner of a property that is being sold, or when a broker is
interested in buying a property, we have agency coupled with an interest
Agency Authority
or rights, may also be a result of "the norm", or what is considered customary in the
business
Implied Authority
an agent's authority to do things not specifically authorized in order to carry out express
authority
Fiduciaries
