Laws of Agency Champions Texas Real
Estate ACTUAL QUESTIONS AND
CORRECT ANSWERS
Fiduciary - CORRECT ANSWERS✅✅A relationship based on trust
Agency - CORRECT ANSWERS✅✅A relationship between two parties
Customer - CORRECT ANSWERS✅✅A person who receives limited brokerage services
without establishing an agency relationship/Also known as 3rd party.
Client - CORRECT ANSWERS✅✅Also known as the principal who engages the
professional advice or services of another, called an agent, and whose interests are protected
by the speci c duties and loyalties of an agency relationship. Many of these duties are
outlined in a listing or buyer/tenant representation agreement
Act that makes it illegal to practice any act of real estate brokerage without a license? -
CORRECT ANSWERS✅✅Texas Real Estate License Act
agency relationship - CORRECT ANSWERS✅✅When one person, the agent, acts for or on
behalf of another person, the principal, who is also known as the client.
principal - CORRECT ANSWERS✅✅the one who hires and gives authority to the agent
Agent - CORRECT ANSWERS✅✅A broker who represents a seller, landlord, buyer or
tenant. (2) Sales agent or broker license holders who represent the broker with whom they are
associated
Texas Real Estate License Act (TRELA) - CORRECT ANSWERS✅✅Was passed 1939.
Created to enforce and administer the act in 1949. The purpose of the Act is to protect the
public against unscrupulous brokers and sales agents.
Two types of licenses - CORRECT ANSWERS✅✅Broker/Sales Agent
,If a broker has more than one place of business...What is required for each office? -
CORRECT ANSWERS✅✅branch office license is required for each location/not necessary
to have a licensed broker at each location
Federal law dictates that commissions are a matter of __________________________ -
CORRECT ANSWERS✅✅Negotiations
When dealing with a customer, the broker has duties of
____________________________________________. - CORRECT
ANSWERS✅✅disclosure, honesty, fairness and competency
A seller becomes a client by entering into a ___________________ with the broker -
CORRECT ANSWERS✅✅listing agreement
A buyer becomes a client by entering into a ___________________________ agreement
with the broker. - CORRECT ANSWERS✅✅buyer representation
License holder - CORRECT ANSWERS✅✅A person licensed by the Texas Real Estate
Commission (TREC) to act as a broker or sales agent in a real estate transaction.
Subagent - CORRECT ANSWERS✅✅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.
Cooperative Broker - CORRECT ANSWERS✅✅A broker selling the listing of another
broker. A cooperative broker may complete the transaction as a subagent of the listing broker,
or may represent the buyers under an agency agreement; he also known as the other broker
Broker license holder - CORRECT ANSWERS✅✅An individual holding a broker's license
issued by TREC. Brokers may act independently in conducting real estate transactions, or
may engage other broker or sales agent license holders to represent them in the conduct of
their real estate business
, Sales agent license holder - CORRECT ANSWERS✅✅An individual holding a license
issued by TREC an agent of the sponsoring broker. He or she may conduct business only
through his or her sponsoring broker
Broker Associate - CORRECT ANSWERS✅✅A broker associated with and conducting all
of his or her business as an agent of another broker
Sales Associate - CORRECT ANSWERS✅✅A sales agent or broker license holder
associated with and conducting business as an agent of his or her sponsoring broker
Seller's Agent - CORRECT ANSWERS✅✅A broker representing the seller in a real estate
transaction, also referred to as a Seller's Broker, Listing Broker, or Listing Agent
Buyer's Agent - CORRECT ANSWERS✅✅A broker representing the buyer in a real estate
transaction, also referred to as a Buyer's Broker, Selling Broker, or Selling Agent.
Landlord's Agent - CORRECT ANSWERS✅✅A broker representing a landlord in a real
estate transaction
Tenant's Agent - CORRECT ANSWERS✅✅A broker representing a tenant in a real estate
transaction
License holders have two levels of responsibility - CORRECT
ANSWERS✅✅Public/Fiduciary
Duties to Customer - CORRECT ANSWERS✅✅a. Honesty
b. Disclosure of material facts
c. Handle all funds with care
d. Be responsible for written or oral statements
Duties to Client - CORRECT ANSWERS✅✅a. Put the interests of the client rst
b. Give full disclosure to the client (advice and opinions in addition to disclosing all pertinent
facts - both material and other)
Estate ACTUAL QUESTIONS AND
CORRECT ANSWERS
Fiduciary - CORRECT ANSWERS✅✅A relationship based on trust
Agency - CORRECT ANSWERS✅✅A relationship between two parties
Customer - CORRECT ANSWERS✅✅A person who receives limited brokerage services
without establishing an agency relationship/Also known as 3rd party.
Client - CORRECT ANSWERS✅✅Also known as the principal who engages the
professional advice or services of another, called an agent, and whose interests are protected
by the speci c duties and loyalties of an agency relationship. Many of these duties are
outlined in a listing or buyer/tenant representation agreement
Act that makes it illegal to practice any act of real estate brokerage without a license? -
CORRECT ANSWERS✅✅Texas Real Estate License Act
agency relationship - CORRECT ANSWERS✅✅When one person, the agent, acts for or on
behalf of another person, the principal, who is also known as the client.
principal - CORRECT ANSWERS✅✅the one who hires and gives authority to the agent
Agent - CORRECT ANSWERS✅✅A broker who represents a seller, landlord, buyer or
tenant. (2) Sales agent or broker license holders who represent the broker with whom they are
associated
Texas Real Estate License Act (TRELA) - CORRECT ANSWERS✅✅Was passed 1939.
Created to enforce and administer the act in 1949. The purpose of the Act is to protect the
public against unscrupulous brokers and sales agents.
Two types of licenses - CORRECT ANSWERS✅✅Broker/Sales Agent
,If a broker has more than one place of business...What is required for each office? -
CORRECT ANSWERS✅✅branch office license is required for each location/not necessary
to have a licensed broker at each location
Federal law dictates that commissions are a matter of __________________________ -
CORRECT ANSWERS✅✅Negotiations
When dealing with a customer, the broker has duties of
____________________________________________. - CORRECT
ANSWERS✅✅disclosure, honesty, fairness and competency
A seller becomes a client by entering into a ___________________ with the broker -
CORRECT ANSWERS✅✅listing agreement
A buyer becomes a client by entering into a ___________________________ agreement
with the broker. - CORRECT ANSWERS✅✅buyer representation
License holder - CORRECT ANSWERS✅✅A person licensed by the Texas Real Estate
Commission (TREC) to act as a broker or sales agent in a real estate transaction.
Subagent - CORRECT ANSWERS✅✅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.
Cooperative Broker - CORRECT ANSWERS✅✅A broker selling the listing of another
broker. A cooperative broker may complete the transaction as a subagent of the listing broker,
or may represent the buyers under an agency agreement; he also known as the other broker
Broker license holder - CORRECT ANSWERS✅✅An individual holding a broker's license
issued by TREC. Brokers may act independently in conducting real estate transactions, or
may engage other broker or sales agent license holders to represent them in the conduct of
their real estate business
, Sales agent license holder - CORRECT ANSWERS✅✅An individual holding a license
issued by TREC an agent of the sponsoring broker. He or she may conduct business only
through his or her sponsoring broker
Broker Associate - CORRECT ANSWERS✅✅A broker associated with and conducting all
of his or her business as an agent of another broker
Sales Associate - CORRECT ANSWERS✅✅A sales agent or broker license holder
associated with and conducting business as an agent of his or her sponsoring broker
Seller's Agent - CORRECT ANSWERS✅✅A broker representing the seller in a real estate
transaction, also referred to as a Seller's Broker, Listing Broker, or Listing Agent
Buyer's Agent - CORRECT ANSWERS✅✅A broker representing the buyer in a real estate
transaction, also referred to as a Buyer's Broker, Selling Broker, or Selling Agent.
Landlord's Agent - CORRECT ANSWERS✅✅A broker representing a landlord in a real
estate transaction
Tenant's Agent - CORRECT ANSWERS✅✅A broker representing a tenant in a real estate
transaction
License holders have two levels of responsibility - CORRECT
ANSWERS✅✅Public/Fiduciary
Duties to Customer - CORRECT ANSWERS✅✅a. Honesty
b. Disclosure of material facts
c. Handle all funds with care
d. Be responsible for written or oral statements
Duties to Client - CORRECT ANSWERS✅✅a. Put the interests of the client rst
b. Give full disclosure to the client (advice and opinions in addition to disclosing all pertinent
facts - both material and other)
