Champions Real Estate Exam: Law of Agency
UPDATED Exam Questions and CORRECT
Answers
This type of agency is created when actions lead another person to assume that
one is an agent (Example- you have a key to neighbors home and show the
property) - CORRECT ANSWERS-Ostensible Agency
If a buyer hasn't signed a buyer's rep agreement, then who is representing the
buyer? - CORRECT ANSWERS-No one
This establishes a relationship with a broker - CORRECT ANSWERS-The
Buyer/Tenant Representation agreement
This can be written or oral - CORRECT ANSWERS-Disclosure of Representation
These are required to place their own selfish interests behind that of their clients.
- CORRECT ANSWERS-Fiduciaries
This person hires an agent - CORRECT ANSWERS-The Principal
The agent works on behalf of this person - CORRECT ANSWERS-the client
(principal)
This type of agency allows for the greatest range of authority - CORRECT
ANSWERS-Universal
This is provided to the agent when there is written documentation that the agency
relationship exists. - CORRECT ANSWERS-Express authority
This is the most limited of all the agency relationships - CORRECT ANSWERS-
Special agency
,This type of agency is created when a 3rd party believes that an agent has
authority that has NOT been granted by a principal - CORRECT ANSWERS-Agency
by Estoppel
A licensee isn't required to provide the IABS when... - CORRECT ANSWERS-the
licensee meets with a party that is already represented
A broker is obligated to treat who honestly? - CORRECT ANSWERS-client,
customer, and agents
Broker must have written consent to act as... - CORRECT ANSWERS-an
intermediary
IABS form is the property of... - CORRECT ANSWERS-TREC
Broker Bob is the broker/owner of ABC Realty. Agent Bill at ABC Realty is a listing
agent. Agent Sue, also at ABC Realty, is working with a buyer who is being
represented by the firm. Agent Sue's buyer wants to purchase Agent Bill's listing
In the above transaction, Broker Bob will: - CORRECT ANSWERS-Remain neutral
and refrain from providing advice and opinion to either party
The IABS should contain - CORRECT ANSWERS-How the broker will be
compensated
Broker Steve, having no agents, is a solo practitioner. He has a client buyer that
wants to purchase one of his listings. The process that Broker Steve must use is: -
CORRECT ANSWERS-Intermediary without appointments
A fiduciary relationship is based on - CORRECT ANSWERS-trust
,Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who
wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has chosen to
not enter into an
agency relationship with City Realty.
In the above transaction, who is representing the buyer? - CORRECT ANSWERS-No
body because the buyer is a customer.
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who
wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has chosen to
not enter into an
agency relationship with City Realty.
In the above transaction, who is City Realty representing? - CORRECT ANSWERS-
The seller, because City Realty is a subagent of ABC Realty in this transaction
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who
wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has chosen to
not enter into an
agency relationship with City Realty.
What type of transaction is this? - CORRECT ANSWERS-cooperative (co-op)
An exemption to using the Information About Brokerage Services form is: -
CORRECT ANSWERS-a lease for less than 1 year with no sale anticipated
A licensee not associated with the client's broker but who is representing the
client through a
cooperative agreement with the client's broker is known as: - CORRECT ANSWERS-
Subagent
This must be in at least 10 point type, must have the exact language prescribed in
, the License Act
and must be provided to a buyer or seller at the first substantive discussion of a
real estate
transaction - CORRECT ANSWERS-IABS (Information About Brokerage Services)
Jeffrey wants to see property that your company has listed; he does not want to
be represented.
The agent must: - CORRECT ANSWERS-give Jeffrey the IABS form
A licensee must present the Information About Brokerage Services form: -
CORRECT ANSWERS-at the first substantive discussion of a real estate transaction
A licensee has a listing with a seller and has a buyer's representation agreement
signed with a
buyer who desires to purchase this agent's listing. How is the agent operating? -
CORRECT ANSWERS-as a non-appointed associate in an Intermediary relationship
TREC was established in: - CORRECT ANSWERS-1949
Which of the following is the real estate licensing authority in Texas? - CORRECT
ANSWERS-TREC
A termination date in a listing agreement must be: - CORRECT ANSWERS-definite
Which of the following is NOT an agent's duty to a client? - CORRECT ANSWERS-
Trust
These are the duties: OLDCAR: Obedience, loyalty, disclosure, confidentiality,
accounting, reasonable care
The duty of ___________ means that an agent must follow all of the lawful
instructions of
UPDATED Exam Questions and CORRECT
Answers
This type of agency is created when actions lead another person to assume that
one is an agent (Example- you have a key to neighbors home and show the
property) - CORRECT ANSWERS-Ostensible Agency
If a buyer hasn't signed a buyer's rep agreement, then who is representing the
buyer? - CORRECT ANSWERS-No one
This establishes a relationship with a broker - CORRECT ANSWERS-The
Buyer/Tenant Representation agreement
This can be written or oral - CORRECT ANSWERS-Disclosure of Representation
These are required to place their own selfish interests behind that of their clients.
- CORRECT ANSWERS-Fiduciaries
This person hires an agent - CORRECT ANSWERS-The Principal
The agent works on behalf of this person - CORRECT ANSWERS-the client
(principal)
This type of agency allows for the greatest range of authority - CORRECT
ANSWERS-Universal
This is provided to the agent when there is written documentation that the agency
relationship exists. - CORRECT ANSWERS-Express authority
This is the most limited of all the agency relationships - CORRECT ANSWERS-
Special agency
,This type of agency is created when a 3rd party believes that an agent has
authority that has NOT been granted by a principal - CORRECT ANSWERS-Agency
by Estoppel
A licensee isn't required to provide the IABS when... - CORRECT ANSWERS-the
licensee meets with a party that is already represented
A broker is obligated to treat who honestly? - CORRECT ANSWERS-client,
customer, and agents
Broker must have written consent to act as... - CORRECT ANSWERS-an
intermediary
IABS form is the property of... - CORRECT ANSWERS-TREC
Broker Bob is the broker/owner of ABC Realty. Agent Bill at ABC Realty is a listing
agent. Agent Sue, also at ABC Realty, is working with a buyer who is being
represented by the firm. Agent Sue's buyer wants to purchase Agent Bill's listing
In the above transaction, Broker Bob will: - CORRECT ANSWERS-Remain neutral
and refrain from providing advice and opinion to either party
The IABS should contain - CORRECT ANSWERS-How the broker will be
compensated
Broker Steve, having no agents, is a solo practitioner. He has a client buyer that
wants to purchase one of his listings. The process that Broker Steve must use is: -
CORRECT ANSWERS-Intermediary without appointments
A fiduciary relationship is based on - CORRECT ANSWERS-trust
,Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who
wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has chosen to
not enter into an
agency relationship with City Realty.
In the above transaction, who is representing the buyer? - CORRECT ANSWERS-No
body because the buyer is a customer.
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who
wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has chosen to
not enter into an
agency relationship with City Realty.
In the above transaction, who is City Realty representing? - CORRECT ANSWERS-
The seller, because City Realty is a subagent of ABC Realty in this transaction
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who
wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has chosen to
not enter into an
agency relationship with City Realty.
What type of transaction is this? - CORRECT ANSWERS-cooperative (co-op)
An exemption to using the Information About Brokerage Services form is: -
CORRECT ANSWERS-a lease for less than 1 year with no sale anticipated
A licensee not associated with the client's broker but who is representing the
client through a
cooperative agreement with the client's broker is known as: - CORRECT ANSWERS-
Subagent
This must be in at least 10 point type, must have the exact language prescribed in
, the License Act
and must be provided to a buyer or seller at the first substantive discussion of a
real estate
transaction - CORRECT ANSWERS-IABS (Information About Brokerage Services)
Jeffrey wants to see property that your company has listed; he does not want to
be represented.
The agent must: - CORRECT ANSWERS-give Jeffrey the IABS form
A licensee must present the Information About Brokerage Services form: -
CORRECT ANSWERS-at the first substantive discussion of a real estate transaction
A licensee has a listing with a seller and has a buyer's representation agreement
signed with a
buyer who desires to purchase this agent's listing. How is the agent operating? -
CORRECT ANSWERS-as a non-appointed associate in an Intermediary relationship
TREC was established in: - CORRECT ANSWERS-1949
Which of the following is the real estate licensing authority in Texas? - CORRECT
ANSWERS-TREC
A termination date in a listing agreement must be: - CORRECT ANSWERS-definite
Which of the following is NOT an agent's duty to a client? - CORRECT ANSWERS-
Trust
These are the duties: OLDCAR: Obedience, loyalty, disclosure, confidentiality,
accounting, reasonable care
The duty of ___________ means that an agent must follow all of the lawful
instructions of
