Texas Law of Agency Q&A
Protection against damage or loss.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client - ANSWER B
A person who receives limited brokerage services without establishing an agency
relationship.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client - ANSWER D
Based on trust.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client - ANSWER A
Also known as the principal.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client - ANSWER E
A relationship between two parties.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client - ANSWER C
Refusing to tell a buyer how long a property has been on the market.
a. Customer Level
b. Client Level
,c. Both - ANSWER A
Helping the buyer formulate a negotiating strategy.
a. Customer Level
b. Client Level
c. Both - ANSWER B
Disclosing material facts about a seller's property.
a. Customer Level
b. Client Level
c. Both - ANSWER C
Refusing to provide a negotiating strategy to a seller.
a. Customer Level
b. Client Level
c. Both - ANSWER B
Providing public information related to the property, such as square footage, taxes.
a. Customer Level
b. Client Level
c. Both - ANSWER C
Telling a buyer that a seller's property is overpriced.
a. Customer Level
b. Client Level
c. Both - ANSWER B
Disclosing to a buyer that the current use of a property is in violation of deed
restrictions.
a. Customer Level
b. Client Level
c. Both - ANSWER C
Presenting a comparative market analysis to a buyer, showing the property is
overpriced.
a. Customer Level
b. Client Level
c. Both - ANSWER B
Telling the seller that the buyer can offer more money for his property.
a. Customer Level
b. Client Level
,c. Both - ANSWER A
Leading a buyer to believe that you are working int he buyer's best interest.
a. Customer Level
b. Client Level
c. Both - ANSWER B
Calling attention to negative features such as an inefficient floor plan.
a. Customer Level
b. Client Level
c. Both - ANSWER B
Placing "Property Wanted" ads to find an appropriate property for a buyer.
a. Customer Level
b. Client Level
c. Both - ANSWER B
Telling a seller's agent that an offer from your buyer is just a beginning point.
a. Customer Level
b. Client Level
c. Both - ANSWER A
An agency relationship exists when one person, the ___________ acts for, or on the
behalf of another person, the _______________.
a. Client, agent
b. Agent, principal
c. Principal, agent
d. Broker, customer - ANSWER B
The principal must always remain loyal to the customer.
a. True
b. False - ANSWER B
The duties of the principal to the agent include all of the following, EXCEPT:
a. Trust
b. Reimbursement
c. Performance
d. Indemnification - ANSWER A
_______________ means that the principal will protect the agent from suffering a
loss due to the agent's reliance on information received from the principal.
a. Performance
, b. Trust
c. Indemnification
d. None of the above - ANSWER C
Agency is:
a. The relationship the agent has with the principal
b. When the agent acts for, or on behalf of the client
c. A fiduciary relationship
d. All of the above - ANSWER D
A licensee has no duties to a customer.
a. True
b. False - ANSWER B
A buyer's agent:
a. Represents the buyer
b. Is always the intermediary
c. Signs a Seller's Disclosure
d. None of the above - ANSWER A
A subagent:
a. Is a licensee not associated with the seller's broker
b. Must work in the same real estate office as the listing broker
c. Must place the interests of the broker first
d. Is a licensee that represents the buyer or seller directly - ANSWER A
The right to represent the principal in a particular type of transaction or business.
a. Special agency
b. General agency
c. Express authority
d. Universal agency
e. Agency by ratification - ANSWER B
Authority that comes from specific instructions, either oral or written.
a. Special agency
b. General agency
c. Express authority
d. Universal agency
e. Agency by ratification - ANSWER C
The power to act for the principal in all transactions.
a. Special agency
b. General agency
Protection against damage or loss.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client - ANSWER B
A person who receives limited brokerage services without establishing an agency
relationship.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client - ANSWER D
Based on trust.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client - ANSWER A
Also known as the principal.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client - ANSWER E
A relationship between two parties.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client - ANSWER C
Refusing to tell a buyer how long a property has been on the market.
a. Customer Level
b. Client Level
,c. Both - ANSWER A
Helping the buyer formulate a negotiating strategy.
a. Customer Level
b. Client Level
c. Both - ANSWER B
Disclosing material facts about a seller's property.
a. Customer Level
b. Client Level
c. Both - ANSWER C
Refusing to provide a negotiating strategy to a seller.
a. Customer Level
b. Client Level
c. Both - ANSWER B
Providing public information related to the property, such as square footage, taxes.
a. Customer Level
b. Client Level
c. Both - ANSWER C
Telling a buyer that a seller's property is overpriced.
a. Customer Level
b. Client Level
c. Both - ANSWER B
Disclosing to a buyer that the current use of a property is in violation of deed
restrictions.
a. Customer Level
b. Client Level
c. Both - ANSWER C
Presenting a comparative market analysis to a buyer, showing the property is
overpriced.
a. Customer Level
b. Client Level
c. Both - ANSWER B
Telling the seller that the buyer can offer more money for his property.
a. Customer Level
b. Client Level
,c. Both - ANSWER A
Leading a buyer to believe that you are working int he buyer's best interest.
a. Customer Level
b. Client Level
c. Both - ANSWER B
Calling attention to negative features such as an inefficient floor plan.
a. Customer Level
b. Client Level
c. Both - ANSWER B
Placing "Property Wanted" ads to find an appropriate property for a buyer.
a. Customer Level
b. Client Level
c. Both - ANSWER B
Telling a seller's agent that an offer from your buyer is just a beginning point.
a. Customer Level
b. Client Level
c. Both - ANSWER A
An agency relationship exists when one person, the ___________ acts for, or on the
behalf of another person, the _______________.
a. Client, agent
b. Agent, principal
c. Principal, agent
d. Broker, customer - ANSWER B
The principal must always remain loyal to the customer.
a. True
b. False - ANSWER B
The duties of the principal to the agent include all of the following, EXCEPT:
a. Trust
b. Reimbursement
c. Performance
d. Indemnification - ANSWER A
_______________ means that the principal will protect the agent from suffering a
loss due to the agent's reliance on information received from the principal.
a. Performance
, b. Trust
c. Indemnification
d. None of the above - ANSWER C
Agency is:
a. The relationship the agent has with the principal
b. When the agent acts for, or on behalf of the client
c. A fiduciary relationship
d. All of the above - ANSWER D
A licensee has no duties to a customer.
a. True
b. False - ANSWER B
A buyer's agent:
a. Represents the buyer
b. Is always the intermediary
c. Signs a Seller's Disclosure
d. None of the above - ANSWER A
A subagent:
a. Is a licensee not associated with the seller's broker
b. Must work in the same real estate office as the listing broker
c. Must place the interests of the broker first
d. Is a licensee that represents the buyer or seller directly - ANSWER A
The right to represent the principal in a particular type of transaction or business.
a. Special agency
b. General agency
c. Express authority
d. Universal agency
e. Agency by ratification - ANSWER B
Authority that comes from specific instructions, either oral or written.
a. Special agency
b. General agency
c. Express authority
d. Universal agency
e. Agency by ratification - ANSWER C
The power to act for the principal in all transactions.
a. Special agency
b. General agency
