LAW OF AGENCY CHAMPIONS TEXAS REAL ESTATE EXAM
Champions Real Estate Exam: Law of Agency
COMPLETE (2025) TEST WITH LATEST UPDATED (QUESTIONS AND
Study online at https://quizlet.com/_58kdj0
ANSWERS)
1. This person hires an agent The Principal
2. The agent works on behalf of this person the client (principal)
3. This type of agency allows for the greatest range of Universal
authority
4. This is provided to the agent when there is written Express authority
documentation that the agency relationship exists.
5. This is the most limited of all the agency relationships Special agency
6. This type of agency is created when a 3rd party be- Agency by Estoppel
lieves that an agent has authority that has NOT been
granted by a principal
7. This type of agency is created when actions lead an- Ostensible Agency
other person to assume that one is an agent (Exam-
ple- you have a key to neighbors home and show the
property)
8. If a buyer hasn't signed a buyer's rep agreement, then No one
who is representing the buyer?
9. This establishes a relationship with a broker The Buyer/Tenant Repre-
sentation agreement
10. This can be written or oral Disclosure of Representa-
tion
11. These are required to place their own selfish interests Fiduciaries
behind that of their clients.
12. A licensee isn't required to provide the IABS when...
, Champions Real Estate Exam: Law of Agency
Study online at https://quizlet.com/_58kdj0
the licensee meets with a
party that is already repre-
sented
13. A broker is obligated to treat who honestly? client, customer, and
agents
14. Broker must have written consent to act as... an intermediary
15. IABS form is the property of... TREC
16. Broker Bob is the broker/owner of ABC Realty. Agent Remain neutral and re-
Bill at ABC Realty is a listing agent. Agent Sue, also frain from providing ad-
at ABC Realty, is working with a buyer who is being vice and opinion to either
represented by the firm. Agent Sue's buyer wants to party
purchase Agent Bill's listing
In the above transaction, Broker Bob will:
17. The IABS should contain How the broker will be
compensated
18. Broker Steve, having no agents, is a solo practitioner. Intermediary without ap-
He has a client buyer that wants to purchase one of pointments
his listings. The process that Broker Steve must use is:
19. A fiduciary relationship is based on trust
20. Agent Joe at ABC Realty has a listing. Agent Sean at No body because the buy-
City Realty has a buyer who wishes to er is a customer.
purchase Joe's listing. The buyer that Agent Sean is
working with has chosen to not enter into an
agency relationship with City Realty.
, Champions Real Estate Exam: Law of Agency
Study online at https://quizlet.com/_58kdj0
In the above transaction, who is representing the buy-
er?
21. Agent Joe at ABC Realty has a listing. Agent Sean at The seller, because City
City Realty has a buyer who wishes to Realty is a subagent of ABC
purchase Joe's listing. The buyer that Agent Sean is Realty in this transaction
working with has chosen to not enter into an
agency relationship with City Realty.
In the above transaction, who is City Realty represent-
ing?
22. Agent Joe at ABC Realty has a listing. Agent Sean at cooperative (co-op)
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?
23. An exemption to using the Information About Broker- a lease for less than 1 year
age Services form is: with no sale anticipated
24. A licensee not associated with the client's broker but Subagent
who is representing the client through a
cooperative agreement with the client's broker is
known as:
25. This must be in at least 10 point type, must have the IABS (Information About
exact language prescribed in the License Act Brokerage Services)
and must be provided to a buyer or seller at the first
substantive discussion of a real estate
transaction
26. give Jeffrey the IABS form
, Champions Real Estate Exam: Law of Agency
Study online at https://quizlet.com/_58kdj0
Jeffrey wants to see property that your company has
listed; he does not want to be represented.
The agent must:
27. A licensee must present the Information About Bro- at the first substantive dis-
kerage Services form: cussion of a real estate
transaction
28. A licensee has a listing with a seller and has a buyer's as a non-appointed asso-
representation agreement signed with a ciate in an Intermediary
buyer who desires to purchase this agent's listing. relationship
How is the agent operating?
29. TREC was established in: 1949
30. Which of the following is the real estate licensing au- TREC
thority in Texas?
31. A termination date in a listing agreement must be: definite
32. Which of the following is NOT an agent's duty to a Trust
client? These are the duties: OLD-
CAR: Obedience, loyalty,
disclosure, confidentiali-
ty, accounting, reasonable
care
33. The duty of ___________ means that an agent must obedience
follow all of the lawful instructions of
the client.
34. Jerome is a licensed agent who desires to sell his Disclose to the buyer in
mother's home. Jerome has the property writing that the seller is his
mother.
Champions Real Estate Exam: Law of Agency
COMPLETE (2025) TEST WITH LATEST UPDATED (QUESTIONS AND
Study online at https://quizlet.com/_58kdj0
ANSWERS)
1. This person hires an agent The Principal
2. The agent works on behalf of this person the client (principal)
3. This type of agency allows for the greatest range of Universal
authority
4. This is provided to the agent when there is written Express authority
documentation that the agency relationship exists.
5. This is the most limited of all the agency relationships Special agency
6. This type of agency is created when a 3rd party be- Agency by Estoppel
lieves that an agent has authority that has NOT been
granted by a principal
7. This type of agency is created when actions lead an- Ostensible Agency
other person to assume that one is an agent (Exam-
ple- you have a key to neighbors home and show the
property)
8. If a buyer hasn't signed a buyer's rep agreement, then No one
who is representing the buyer?
9. This establishes a relationship with a broker The Buyer/Tenant Repre-
sentation agreement
10. This can be written or oral Disclosure of Representa-
tion
11. These are required to place their own selfish interests Fiduciaries
behind that of their clients.
12. A licensee isn't required to provide the IABS when...
, Champions Real Estate Exam: Law of Agency
Study online at https://quizlet.com/_58kdj0
the licensee meets with a
party that is already repre-
sented
13. A broker is obligated to treat who honestly? client, customer, and
agents
14. Broker must have written consent to act as... an intermediary
15. IABS form is the property of... TREC
16. Broker Bob is the broker/owner of ABC Realty. Agent Remain neutral and re-
Bill at ABC Realty is a listing agent. Agent Sue, also frain from providing ad-
at ABC Realty, is working with a buyer who is being vice and opinion to either
represented by the firm. Agent Sue's buyer wants to party
purchase Agent Bill's listing
In the above transaction, Broker Bob will:
17. The IABS should contain How the broker will be
compensated
18. Broker Steve, having no agents, is a solo practitioner. Intermediary without ap-
He has a client buyer that wants to purchase one of pointments
his listings. The process that Broker Steve must use is:
19. A fiduciary relationship is based on trust
20. Agent Joe at ABC Realty has a listing. Agent Sean at No body because the buy-
City Realty has a buyer who wishes to er is a customer.
purchase Joe's listing. The buyer that Agent Sean is
working with has chosen to not enter into an
agency relationship with City Realty.
, Champions Real Estate Exam: Law of Agency
Study online at https://quizlet.com/_58kdj0
In the above transaction, who is representing the buy-
er?
21. Agent Joe at ABC Realty has a listing. Agent Sean at The seller, because City
City Realty has a buyer who wishes to Realty is a subagent of ABC
purchase Joe's listing. The buyer that Agent Sean is Realty in this transaction
working with has chosen to not enter into an
agency relationship with City Realty.
In the above transaction, who is City Realty represent-
ing?
22. Agent Joe at ABC Realty has a listing. Agent Sean at cooperative (co-op)
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?
23. An exemption to using the Information About Broker- a lease for less than 1 year
age Services form is: with no sale anticipated
24. A licensee not associated with the client's broker but Subagent
who is representing the client through a
cooperative agreement with the client's broker is
known as:
25. This must be in at least 10 point type, must have the IABS (Information About
exact language prescribed in the License Act Brokerage Services)
and must be provided to a buyer or seller at the first
substantive discussion of a real estate
transaction
26. give Jeffrey the IABS form
, Champions Real Estate Exam: Law of Agency
Study online at https://quizlet.com/_58kdj0
Jeffrey wants to see property that your company has
listed; he does not want to be represented.
The agent must:
27. A licensee must present the Information About Bro- at the first substantive dis-
kerage Services form: cussion of a real estate
transaction
28. A licensee has a listing with a seller and has a buyer's as a non-appointed asso-
representation agreement signed with a ciate in an Intermediary
buyer who desires to purchase this agent's listing. relationship
How is the agent operating?
29. TREC was established in: 1949
30. Which of the following is the real estate licensing au- TREC
thority in Texas?
31. A termination date in a listing agreement must be: definite
32. Which of the following is NOT an agent's duty to a Trust
client? These are the duties: OLD-
CAR: Obedience, loyalty,
disclosure, confidentiali-
ty, accounting, reasonable
care
33. The duty of ___________ means that an agent must obedience
follow all of the lawful instructions of
the client.
34. Jerome is a licensed agent who desires to sell his Disclose to the buyer in
mother's home. Jerome has the property writing that the seller is his
mother.
