LAW OF AGENCY CHAMPIONS EXAM, PRACTICE EXAM AND STUDY GUIDE LATEST 2025 ACTUAL EXAM 400+ QUESTIONS AND CORRECT DETAILED ANSWERS |ALREADY GRADED A+

LAW OF AGENCY CHAMPIONS EXAM, PRACTICE EXAM AND STUDY GUIDE LATEST 2025 ACTUAL EXAM 400+ QUESTIONS AND CORRECT DETAILED ANSWERS |ALREADY GRADED A+ LAW OF AGENCY CHAMPIONS EXAM, PRACTICE EXAM AND STUDY GUIDE LATEST 2025 ACTUAL EXAM 400+ QUESTIONS AND CORRECT DETAILED ANSWERS |ALREADY GRADED A+ Which of the following is NOT prohibited by the Texas Real Estate License Act? (a) Commingling (b) Conversion (c) Confidentiality (d) Undisclosed Intermediary -CORRECT ANS(c) Confidentiality Which of the following would NOT be an example of Reasonable Care? (a) Helping the client meet contract deadlines (b) Assisting the seller to arrive at a reasonable listing price (c) Recommending the use of independent advisers when appropriate (d) Not making the buyer client aware of new listings coming on the market so that he can focus on one listing at a time -CORRECT ANS(d) Not making the buyer client aware of new listings coming on the market so that he can focus on one listing at a time What form must an agent provide to a potential client at the first substantive discussion of a real estate transaction? a. Buyer's Representation Agreement b. IABS c. Canons of Professional Ethics for Real Estate Agents d. The VAMA -CORRECT ANSb. IABS In real estate, an example of a general agent would be a(n) . a. Property manager b. Escrow agent c. Cooperative Broker d. Intermediary -CORRECT ANSa. Property manager When an agent and potential party enter into a discussio n of a real estate transaction, the party must be provided with a TREC- prescribed agency information form.First contact / orally or written a. "written-only" b. "orally only" c. "face-to-face" d. "substantive" -CORRECT ANS(d) "substantive" The duties of the agent to the principal can be remembered by using the acronym: (a) PETE (b) NEWCAR (c) OLDCAR (d) HOTROD -CORRECT ANS(c) OLDCAR means that an agent must disclose if he or she is representing his or her parents or children. -CORRECT ANSconsanguinity What are two other important laws impact the real estate brokerage business? -CORRECT ANS1. Texas Deceptive Trade Practices Act 2. Fraud in Real Estate and Stock Transactions Fraud in a transaction involving real estate or stock in a corporation or joint stock company consists of a -CORRECT ANS(1) false representation of a past or existing material fact, (2) false promise to do an act, Under Paragraph (b) of Chapter 23 Fraud, an individual who misrepresents a property under this section could be liable for -CORRECT ANSactual damages. Exemplary damages are often referred to as -CORRECT ANSpunitive damages. Each advertisement must include the following in a readily noticeable location in the advertisement these 2 thing -CORRECT ANS(1) the name of the license holder or team placing the advertisement; and (2) the broker's name in at least half the size of the largest contact information for any sales agent, TREC still defines an advertisement as misleading if it: -CORRECT ANS• Implies that a sales agent is responsible for the operation of a brokerage • Fails to include the name of the broker TREC has adopted a used in deciding if an advertisement is clear and to be conspicuous. -CORRECT ANSSafe Harbor Policy On signs or any other type of advertising, a broker's name, the brokerage name, or an assumed name has to be at least -CORRECT ANS50% of the largest item of contact information. TREC has opined over the years that the word or are words that clearly identify the advertiser as a broker -CORRECT ANS"REALTOR®" "Realty" What are the 2 words that TREC says does not clearly advertise as a real estate broker? -CORRECT ANSReal Estate Properties According to consumers, what is the most confusing type of advertisement? -CORRECT ANSTeam Name What are the terms no longer allowed to be used in a Team Name? -CORRECT ANSCompany Realty Associates Brokerage According to TREC, team names must end in? -CORRECT ANSTeam or Group Existing groups have until what date to change all SIGNAGE to comply with new TREC rules? -CORRECT ANSMay 15, 2018 What insurance can protect a broker from a seller misrepresenting property condition? -CORRECT ANSError & Omissions Insurance Does a Seller or Seller's agent have to disclose that a death by natural causes took place in the house? Example Suicide, accident unrelated to the condition of the home, HIV or AIDS -CORRECT ANSNo, this does not have to be disclosed A property is when some event occurs, or some people believe that a past event or condition is affecting it. CORRECT ANS stigmatized What is an example of a psychological stigma property? -CORRECT ANS Haunted house, Events that have happened on the property such as murder, death, infectious disease What is an example of a physical stigma property? -CORRECT ANS Previous flooding, foundation problems, nearby landfills and nuclear power plants occurs as a result of some condition near or on the property. -CORRECT ANSPhysical stigma A property can be stigmatized for a number of reasons: -CORRECT ANS Murder on the premises Death on the property Suicide Infectious Disease Criminal Activity Property Conditions issues Paranormal Activity What is Megan's Law? -CORRECT ANSEnacted in response to the murder of Megan Kanka. Requires the registration of of sex offenders. What are some MATERIAL FACTS that should be questioned and disclosed: -CORRECT ANS1.) Land/soil conditions 2.) Pest infestations 3.) Toxic Mold 4.) Structural Issues - Roof, Doors, foundation, windows 5.) Conditions of electrical and plumbing 6.) Location: near power plant, landfill, Flood Plains, Wetlands, Endangered Species 7.) Potentially uninsurable property 8.) Known alterations and additions 9.) Public controls, Statutes and Public Utilities Ex: Zoning, School district, utility district, HOA membership What is mold? -CORRECT ANSare fungi that can be found both indoors and outdoors The removal of Mold is referred as? -CORRECT ANSRemediation Mold removal contractors must be licensed by? -CORRECT ANSTexas Department of State Health Services What are some Hazardous substances & Conditions? -CORRECT ANSMold