Law of Agency - Champions School of Real Estate
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Law of Agency - Champions School of Real Estate
The principal is also known as - (correct Answer) - client
fiduciary relationship - (correct Answer) - a relationship founded on trust and confidence
Agency Relationship - (correct Answer) - Exists when one person (the agent) acts for, or on
behalf of another person (the principal).
the principal - (correct Answer) - is the one who hires and gives authority to the agent
Texas Real Estate License Act TRELA - (correct Answer) - Was passed 1939. The purpose is to protect the
public against unscrupulous brokers and sales agents.
Texas Real Estate Commission TREC - (correct Answer) - 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... - (correct Answer) - 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... - (correct Answer) - conduct that is dishonest or in bad
faith or that demonstrates untrustworthiness
a broker works FOR - (correct Answer) - a client
a broker works WITH - (correct Answer) - a customer
how does a buyer become a client - (correct Answer) - by entering into a buyer representation
agreement with the broker
Subagent - (correct Answer) - 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
______ - (correct Answer) - agent, principal
which of the following is grounds for suspension or revocation of license by TREC? - (correct Answer) -
splitting commission with a person other than a license holder
The commission can deny licensure to an applicant based on the applicant's _______________________
- (correct Answer) - moral character
Ostensible Agency - (correct Answer) - exists when actions lead another person to assume that one is an
agent.
Agency by Ratification - (correct Answer) - Occurs when an agent acts without prior authorization, and
the principal, upon learning of this action, accepts it.
agency coupled with an interest - (correct Answer) - 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 - (correct Answer) - or rights, may also be a result of "the norm", or what is considered
customary in the business
Implied Authority - (correct Answer) - an agent's authority to do things not specifically authorized in
order to carry out express authority
Fiduciaries - (correct Answer) - are held to the highest amount of good faith, are required to exclude all
selfish interest, are prohibited from putting themselves in positions where personal interest and
representative interest will conflict and must, in any direct dealing with the principal, make full
disclosure of all relevant facts and give the latter an opportunity to obtain independent advice
General Agent - (correct Answer) - has less authority than the universal agent. Has the right to represent
his or her principal in a particular type of transaction or business. One common example of a general
agent in real estate is the property manager.
Save
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Profile Picture
Law of Agency - Champions School of Real Estate
The principal is also known as - (correct Answer) - client
fiduciary relationship - (correct Answer) - a relationship founded on trust and confidence
Agency Relationship - (correct Answer) - Exists when one person (the agent) acts for, or on
behalf of another person (the principal).
the principal - (correct Answer) - is the one who hires and gives authority to the agent
Texas Real Estate License Act TRELA - (correct Answer) - Was passed 1939. The purpose is to protect the
public against unscrupulous brokers and sales agents.
Texas Real Estate Commission TREC - (correct Answer) - 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... - (correct Answer) - 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... - (correct Answer) - conduct that is dishonest or in bad
faith or that demonstrates untrustworthiness
a broker works FOR - (correct Answer) - a client
a broker works WITH - (correct Answer) - a customer
how does a buyer become a client - (correct Answer) - by entering into a buyer representation
agreement with the broker
Subagent - (correct Answer) - 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
______ - (correct Answer) - agent, principal
which of the following is grounds for suspension or revocation of license by TREC? - (correct Answer) -
splitting commission with a person other than a license holder
The commission can deny licensure to an applicant based on the applicant's _______________________
- (correct Answer) - moral character
Ostensible Agency - (correct Answer) - exists when actions lead another person to assume that one is an
agent.
Agency by Ratification - (correct Answer) - Occurs when an agent acts without prior authorization, and
the principal, upon learning of this action, accepts it.
agency coupled with an interest - (correct Answer) - 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 - (correct Answer) - or rights, may also be a result of "the norm", or what is considered
customary in the business
Implied Authority - (correct Answer) - an agent's authority to do things not specifically authorized in
order to carry out express authority
Fiduciaries - (correct Answer) - are held to the highest amount of good faith, are required to exclude all
selfish interest, are prohibited from putting themselves in positions where personal interest and
representative interest will conflict and must, in any direct dealing with the principal, make full
disclosure of all relevant facts and give the latter an opportunity to obtain independent advice
General Agent - (correct Answer) - has less authority than the universal agent. Has the right to represent
his or her principal in a particular type of transaction or business. One common example of a general
agent in real estate is the property manager.
