LAW OF AGENCY CHAMPIONS EXAM | ACTUAL EXAM 400 QUESTIONS AND CORRECT DETAILED ANSWERS | ALREADY GRADED A+ | 2026/2027 | GUARANTEED PASS | STUDY GUIDE.

LAW OF AGENCY CHAMPIONS EXAM | ACTUAL EXAM 400 QUESTIONS AND CORRECT DETAILED ANSWERS | ALREADY GRADED A+ | 2026/2027 | GUARANTEED PASS | STUDY GUIDE. Which of the following is NOT prohibited by the Texas Real Estate License Act? (a) Commingling (b) Conversion (c) Confidentiality (d) Undisclosed Intermediary - ANSWER--(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 - ANSWER--(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 In real estate, an example of a general agent would be a(n) _____________. a. Property manager b. Escrow agent c. Cooperative Broker d. Intermediary - ANSWER--a. Property manager When an agent and potential party enter into a ____________ discussion of a real estate transaction, the party must be provided with a TRECprescribed agency information form.First contact / orally or written a. "written-only" b. "orally only" c. "face-to-face" d. "substantive" - ANSWER--(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 - ANSWER--(c) OLDCAR 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 - ANSWER--b. IABS means that an agent must disclose if he or she is representing his or her parents or children. - ANSWER--consanguinity What are two other important laws impact the real estate brokerage business? - ANSWER--1. 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 - ANSWER--(1) false representation of a past or existing material fact, (2) false promise to do an act, Each advertisement must include the following in a readily noticeable location in the advertisement these 2 thing - ANSWER--(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: - ANSWER--• 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 ________________________________to be used in deciding if an advertisement is clear and conspicuous. - ANSWER-- Safe 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 ___________________________ - ANSWER--50% 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 - ANSWER--"REALTOR®" "Realty" Under Paragraph (b) of Chapter 23 Fraud, an individual who misrepresents a property under this section could be liable for ______________________________ - ANSWER--actual damages. Exemplary damages are often referred to as _______________________ - ANSWER--punitive damages. What are the 2 words that TREC says does not clearly advertise as a real estate broker? - ANSWER--Real Estate Properties According to consumers, what is the most confusing type of advertisement? - ANSWER--Team Name What are the terms no longer allowed to be used in a Team Name? - ANSWER--Company Realty Associates Brokerage According to TREC, team names must end in? - ANSWER--Team or Group Existing groups have until what date to change all SIGNAGE to comply with new TREC rules? - ANSWER--May 15, 2018 A property is ______________ when some event occurs, or some people believe that a past event or condition is affecting it. - ANSWERstigmatized What is an example of a psychological stigma property? - ANSWERHaunted house, Events that have happened on the property such as murder, death, infectious disease What is an example of a physical stigma property? - ANSWERPrevious flooding, foundation problems, nearby landfills and nuclear power plants ___________________ occurs as a result of some condition near or on the property. - ANSWER--Physical stigma A property can be stigmatized for a number of reasons: - ANSWER-- Murder on the premises Death on the property Suicide Infectious Disease Criminal Activity Property Conditions issues Paranormal Activity