Champions Real Estate Exam: Law of Agency
1. This person hires an agent: The Principal
2. The agent works on behalf of this person: the client
(principal)
3. This type of agency allows for the greatest range of
authority: Universal
4. This is provided to the agent when there is written
documentation that the agency relationship exists.:
Express authority
5. This is the most limited of all the agency relationships:
Special agency
6. This type of agency is created when a 3rd party
believes that an agent has authority that has NOT been
granted by a principal: Agency by Estoppel
7. This type of agency is created when actions lead
another person to as- sume that one is an agent
(Example- you have a key to neighbors home and show
the property): Ostensible Agency
8. If a buyer hasn't signed a buyer's rep agreement, then
who is representing the buyer?: No one
,9. This establishes a relationship with a broker: The
Buyer/Tenant Represen- tation agreement
10.This can be written or oral: Disclosure of Representation
11.These are required to place their own selfish
interests behind that of their clients.: Fiduciaries
12.A licensee isn't required to provide the IABS
when...: the licensee meets with a party that is already
represented
13.A broker is obligated to treat who honestly?: client,
customer, and agents
14.Broker must have written consent to act as...: an
intermediary
15.IABS form is the property of...: TREC
16. Broker Bob is the broker/owner of ABC Realty. Agent
Bill at ABC Realty is a listing agent. Agent Sue, also at
ABC Realty, is working with a buyer who is being
represented by the firm. Agent Sue's buyer wants to
purchase Agent Bill's listing
In the above transaction, Broker Bob will:: Remain
neutral and refrain from providing advice and opinion to
,either party
17.The IABS should contain: How the broker will be
compensated
, 18.Broker Steve, having no agents, is a solo
practitioner. He has a client buyer that wants to
purchase one of his listings. The process that Broker
Steve must use is:: Intermediary without appointments
19.A fiduciary relationship is based on: trust
20. Agent Joe at ABC Realty has a listing. Agent Sean
at City Realty has a buyer who wishes to
purchase Joe's listing. The buyer that Agent Sean is
working with has chosen to not enter into an
agency relationship with City Realty.
In the above transaction, who is representing the
buyer?: No body because the buyer is a customer.
21. Agent Joe at ABC Realty has a listing. Agent Sean
at City Realty has a buyer who wishes to
purchase Joe's listing. The buyer that Agent Sean is
working with has chosen to not enter into an
agency relationship with City Realty.
In the above transaction, who is City Realty
representing?: The seller, be- cause City Realty is a
subagent of ABC Realty in this transaction
1. This person hires an agent: The Principal
2. The agent works on behalf of this person: the client
(principal)
3. This type of agency allows for the greatest range of
authority: Universal
4. This is provided to the agent when there is written
documentation that the agency relationship exists.:
Express authority
5. This is the most limited of all the agency relationships:
Special agency
6. This type of agency is created when a 3rd party
believes that an agent has authority that has NOT been
granted by a principal: Agency by Estoppel
7. This type of agency is created when actions lead
another person to as- sume that one is an agent
(Example- you have a key to neighbors home and show
the property): Ostensible Agency
8. If a buyer hasn't signed a buyer's rep agreement, then
who is representing the buyer?: No one
,9. This establishes a relationship with a broker: The
Buyer/Tenant Represen- tation agreement
10.This can be written or oral: Disclosure of Representation
11.These are required to place their own selfish
interests behind that of their clients.: Fiduciaries
12.A licensee isn't required to provide the IABS
when...: the licensee meets with a party that is already
represented
13.A broker is obligated to treat who honestly?: client,
customer, and agents
14.Broker must have written consent to act as...: an
intermediary
15.IABS form is the property of...: TREC
16. Broker Bob is the broker/owner of ABC Realty. Agent
Bill at ABC Realty is a listing agent. Agent Sue, also at
ABC Realty, is working with a buyer who is being
represented by the firm. Agent Sue's buyer wants to
purchase Agent Bill's listing
In the above transaction, Broker Bob will:: Remain
neutral and refrain from providing advice and opinion to
,either party
17.The IABS should contain: How the broker will be
compensated
, 18.Broker Steve, having no agents, is a solo
practitioner. He has a client buyer that wants to
purchase one of his listings. The process that Broker
Steve must use is:: Intermediary without appointments
19.A fiduciary relationship is based on: trust
20. Agent Joe at ABC Realty has a listing. Agent Sean
at City Realty has a buyer who wishes to
purchase Joe's listing. The buyer that Agent Sean is
working with has chosen to not enter into an
agency relationship with City Realty.
In the above transaction, who is representing the
buyer?: No body because the buyer is a customer.
21. Agent Joe at ABC Realty has a listing. Agent Sean
at City Realty has a buyer who wishes to
purchase Joe's listing. The buyer that Agent Sean is
working with has chosen to not enter into an
agency relationship with City Realty.
In the above transaction, who is City Realty
representing?: The seller, be- cause City Realty is a
subagent of ABC Realty in this transaction
