1|Page
ACEABLE III - LAW OF AGENCY EXAM
QUESTIONS AND ANSWERS 2025
Here are the four major types of agency acts: -
....ANSWER ....✔✔ Listing
Buying
Leasing
Property Management
TREC's purpose is to - ....ANSWER ....✔✔ regulate
educational and licensing programs that maintain
standards AND interpret legislation that affects the real
estate profession — primarily the Texas Real Estate
License Act (TRELA).
Integrity - ....ANSWER ....✔✔ Satisfy to the
commission (TREC) that the candidate meets and exceeds
their character standards (honesty, trustworthiness, and
integrity).
Competence - ....ANSWER ....✔✔ Demonstrate
competence by passing the licensing exam.
,2|Page
Broker: - ....ANSWER ....✔✔ An individual licensed by
TREC to perform brokerage duties; sponsors sales
agents to represent clients on their behalf
Sales agent: - ....ANSWER ....✔✔ An individual
holding a sales agent license from TREC who is
sponsored by a broker
License holder - ....ANSWER ....✔✔ A broker or a
sales agent licensed by TREC
REALTOR - ....ANSWER ....✔✔ A licensed sales agent
who is a member of the National Association of
REALTORS®.
Brokers are - ....ANSWER ....✔✔ liable for all
sponsored actions committed by their sales agents.
Sales agents represent - ....ANSWER ....✔✔ their
broker in all transactions in real estate dealings and
transactions.
,3|Page
Listing Agent: - ....ANSWER ....✔✔ A broker
representing a seller in a real estate transaction, a.k.a.
seller's agent, seller's broker, or listing broker
Buyer's Agent: - ....ANSWER ....✔✔ A broker
representing a buyer in a real estate transaction, a.k.a.
selling agent, buyer's broker, or selling broker
Tenant's Agent - ....ANSWER ....✔✔ A broker
representing a tenant in a real estate transaction
Landlord's Agent: - ....ANSWER ....✔✔ A broker
representing a landlord in a real estate transaction
Principal - ....ANSWER ....✔✔ The major parties of
the transaction (the buyer and seller or landlord and
tenant) or a party who has authorized an agent to
represent them
Client (principal) - ....ANSWER ....✔✔ Anyone who
has an agency relationship with you or your broker is
your client
, 4|Page
Customer - ....ANSWER ....✔✔ A party to the
transaction who has an agency relationship with another
license holder
Third Party - ....ANSWER ....✔✔ All non-client parties
to a transaction, including real estate professionals
Types of Principles: - ....ANSWER ....✔✔ Seller: Party
seeking to sell their property in a real estate transaction
Buyer: Party seeking to buy property in a real estate
transaction
Tenant: Party who occupies land or property rented
from a landlord
Landlord: Party who rents land or property to a tenant
Client Vs Customer: - ....ANSWER ....✔✔ A
broker/agent works for a client.
A broker/agent works with a customer.
ACEABLE III - LAW OF AGENCY EXAM
QUESTIONS AND ANSWERS 2025
Here are the four major types of agency acts: -
....ANSWER ....✔✔ Listing
Buying
Leasing
Property Management
TREC's purpose is to - ....ANSWER ....✔✔ regulate
educational and licensing programs that maintain
standards AND interpret legislation that affects the real
estate profession — primarily the Texas Real Estate
License Act (TRELA).
Integrity - ....ANSWER ....✔✔ Satisfy to the
commission (TREC) that the candidate meets and exceeds
their character standards (honesty, trustworthiness, and
integrity).
Competence - ....ANSWER ....✔✔ Demonstrate
competence by passing the licensing exam.
,2|Page
Broker: - ....ANSWER ....✔✔ An individual licensed by
TREC to perform brokerage duties; sponsors sales
agents to represent clients on their behalf
Sales agent: - ....ANSWER ....✔✔ An individual
holding a sales agent license from TREC who is
sponsored by a broker
License holder - ....ANSWER ....✔✔ A broker or a
sales agent licensed by TREC
REALTOR - ....ANSWER ....✔✔ A licensed sales agent
who is a member of the National Association of
REALTORS®.
Brokers are - ....ANSWER ....✔✔ liable for all
sponsored actions committed by their sales agents.
Sales agents represent - ....ANSWER ....✔✔ their
broker in all transactions in real estate dealings and
transactions.
,3|Page
Listing Agent: - ....ANSWER ....✔✔ A broker
representing a seller in a real estate transaction, a.k.a.
seller's agent, seller's broker, or listing broker
Buyer's Agent: - ....ANSWER ....✔✔ A broker
representing a buyer in a real estate transaction, a.k.a.
selling agent, buyer's broker, or selling broker
Tenant's Agent - ....ANSWER ....✔✔ A broker
representing a tenant in a real estate transaction
Landlord's Agent: - ....ANSWER ....✔✔ A broker
representing a landlord in a real estate transaction
Principal - ....ANSWER ....✔✔ The major parties of
the transaction (the buyer and seller or landlord and
tenant) or a party who has authorized an agent to
represent them
Client (principal) - ....ANSWER ....✔✔ Anyone who
has an agency relationship with you or your broker is
your client
, 4|Page
Customer - ....ANSWER ....✔✔ A party to the
transaction who has an agency relationship with another
license holder
Third Party - ....ANSWER ....✔✔ All non-client parties
to a transaction, including real estate professionals
Types of Principles: - ....ANSWER ....✔✔ Seller: Party
seeking to sell their property in a real estate transaction
Buyer: Party seeking to buy property in a real estate
transaction
Tenant: Party who occupies land or property rented
from a landlord
Landlord: Party who rents land or property to a tenant
Client Vs Customer: - ....ANSWER ....✔✔ A
broker/agent works for a client.
A broker/agent works with a customer.
