CHAMPIONS REAL ESTATE AGENCY EXAM 2025 |
110 QUESTIONS WITH ACCURATE SOLUTIONS
1. A broker's responsibility for disclosure is limited to
areas: Inside the property
Outside the property
Accessible for visual inspection
The seller informs them of
2. If a licensed real estate agent is found to have split a commission with
an unlicensed friend who helped with a sale, what potential
consequences could they face from TREC?
They may receive a warning but keep their license.
They could face suspension or revocation of their license.
They will be required to pay a fine but retain their license.
They will be mandated to take additional training courses.
3. Which of the following actions creates risk for the broker?
Mishandling trust funds
Unintentionally creating an unwritten agency relationship with a
potential buyer/seller
Failing to give the proper disclosures in a timely manner
All of these actions create risk for the broker
4. At what point should prospective buyers/sellers receive the "Information
About Brokerage Services" (IABS) form?
The brochure is recommended, but not required.
The IABS should be given to prospective buyer/seller at the first
substantive dialogue about real estate
, The brochure should be handed out to all visitors at an open house.
The brochure is required to be included in the paperwork at
closing.
5. To act as an intermediary, a broker must have written consent
from Neither party being represented in the transaction
Each party being represented in the
transaction Either party being represented in the
transaction The agents in all parties involved in
the transaction
6. In the context of real estate agency relationships, what term describes
the individual or entity that employs an agent to act on their behalf?
Agent
Principal
Client
Broker
7. If a real estate agent fails to disclose a known defect in a property to a
potential buyer, which ethical standard is likely being violated, and
what could be the potential consequences for the agent?
The agent is violating the duty of loyalty, which could result in
loss of license.
The agent is violating the duty of disclosure, which could lead to
legal action and loss of commission.
The agent is violating the duty of confidentiality, which could
result in a fine.
The agent is violating the duty of obedience, which could lead to a
reprimand from TREC.
,8. License holder compliance with the TREC's Canons of Professional Ethics
and Conduct is
less arduous than the Code of Ethics of the National Association of
REALTORS®.
a regulation of the state and licensees can be held liable
for violations.
not enforceable because it has not actually been legislated into
law.
strictly a professional-to-professional document that consumers
need not be aware of.
9. A buyer's broker representing a buyer with no contract and no
discussion has created which type of agency relationship?
Null
Express
illegal
Implied
10. A broker in Texas is considering joining a new Multiple Listing Service
(MLS) to enhance their business. What key benefit related to fee-
splitting should they expect from this decision?
Increased advertising costs for listings.
Limited access to commission-sharing opportunities.
Enhanced collaboration with other brokers for commission splits.
Reduced regulatory oversight from the Texas Real Estate
Commission.
11. A buyer is:
Anyone who wants to view homes
, Someone who wishes to list a home with a broker
Someone who wants to buy a home and is on a timeline to do so
Always a customer, never a client
12. In Texas, what type of agency relationship is explicitly stated as
not existing with any party to a transaction?
Express
Implied
Dual
Single
13. James is a sales agent who is sponsored by Best Realty, and he is a
member of the A-1 Team. What must be done to ensure that James can use
the team name in advertising?
James must submit the advertising to TREC staff for
approval. James must register the name with TREC.
James's broker must register the name with TREC.
James must submit the advertising to the full commission for
approval at its next quarterly meeting.
14. If a new sales agent, Maria, enters into a relationship with broker
Alex under an independent contractor agreement, which of the
following statements is true regarding their roles?
Maria is Alex's principal, and Alex is her agent.
Alex is Maria's principal, and Maria is his agent.
Both Maria and Alex are principals in the
relationship. Maria and Alex are equal partners in the
transaction.
110 QUESTIONS WITH ACCURATE SOLUTIONS
1. A broker's responsibility for disclosure is limited to
areas: Inside the property
Outside the property
Accessible for visual inspection
The seller informs them of
2. If a licensed real estate agent is found to have split a commission with
an unlicensed friend who helped with a sale, what potential
consequences could they face from TREC?
They may receive a warning but keep their license.
They could face suspension or revocation of their license.
They will be required to pay a fine but retain their license.
They will be mandated to take additional training courses.
3. Which of the following actions creates risk for the broker?
Mishandling trust funds
Unintentionally creating an unwritten agency relationship with a
potential buyer/seller
Failing to give the proper disclosures in a timely manner
All of these actions create risk for the broker
4. At what point should prospective buyers/sellers receive the "Information
About Brokerage Services" (IABS) form?
The brochure is recommended, but not required.
The IABS should be given to prospective buyer/seller at the first
substantive dialogue about real estate
, The brochure should be handed out to all visitors at an open house.
The brochure is required to be included in the paperwork at
closing.
5. To act as an intermediary, a broker must have written consent
from Neither party being represented in the transaction
Each party being represented in the
transaction Either party being represented in the
transaction The agents in all parties involved in
the transaction
6. In the context of real estate agency relationships, what term describes
the individual or entity that employs an agent to act on their behalf?
Agent
Principal
Client
Broker
7. If a real estate agent fails to disclose a known defect in a property to a
potential buyer, which ethical standard is likely being violated, and
what could be the potential consequences for the agent?
The agent is violating the duty of loyalty, which could result in
loss of license.
The agent is violating the duty of disclosure, which could lead to
legal action and loss of commission.
The agent is violating the duty of confidentiality, which could
result in a fine.
The agent is violating the duty of obedience, which could lead to a
reprimand from TREC.
,8. License holder compliance with the TREC's Canons of Professional Ethics
and Conduct is
less arduous than the Code of Ethics of the National Association of
REALTORS®.
a regulation of the state and licensees can be held liable
for violations.
not enforceable because it has not actually been legislated into
law.
strictly a professional-to-professional document that consumers
need not be aware of.
9. A buyer's broker representing a buyer with no contract and no
discussion has created which type of agency relationship?
Null
Express
illegal
Implied
10. A broker in Texas is considering joining a new Multiple Listing Service
(MLS) to enhance their business. What key benefit related to fee-
splitting should they expect from this decision?
Increased advertising costs for listings.
Limited access to commission-sharing opportunities.
Enhanced collaboration with other brokers for commission splits.
Reduced regulatory oversight from the Texas Real Estate
Commission.
11. A buyer is:
Anyone who wants to view homes
, Someone who wishes to list a home with a broker
Someone who wants to buy a home and is on a timeline to do so
Always a customer, never a client
12. In Texas, what type of agency relationship is explicitly stated as
not existing with any party to a transaction?
Express
Implied
Dual
Single
13. James is a sales agent who is sponsored by Best Realty, and he is a
member of the A-1 Team. What must be done to ensure that James can use
the team name in advertising?
James must submit the advertising to TREC staff for
approval. James must register the name with TREC.
James's broker must register the name with TREC.
James must submit the advertising to the full commission for
approval at its next quarterly meeting.
14. If a new sales agent, Maria, enters into a relationship with broker
Alex under an independent contractor agreement, which of the
following statements is true regarding their roles?
Maria is Alex's principal, and Alex is her agent.
Alex is Maria's principal, and Maria is his agent.
Both Maria and Alex are principals in the
relationship. Maria and Alex are equal partners in the
transaction.
