1|Page
LAW OF AGENCY CHAMPIONS EXAM|| ACCURATE
AND FREQUENTLY TESTED QUESTIONS AND 100%
CORRECT ANSWERS WITH RATIONALES|| LATEST
AND COMPLETE UPDATE WITH EXPERT VERIFIED
SOLUTIONS|| SURE PASS!!
Which of the following has the authority to suspend or revoke a Texas real estate
license? - ANSWER: TREC
Which of the following is an element of a listing agreement? - ANSWER: the
agreement to pay a stated commission, usually a percentage of the sales price
the IRS considers which of the following a violation of independent contractor
status? - ANSWER: salesperson is told to work set hours, guaranteed a monthly
minimum wage, has his licensing fees paid by the broker
the TAR buyer representation agreement in or text book: - ANSWER: authorizes
intermediary, authorizes the buyer to give the agent complete loyalty, establishes
an exclusive market area
The amendments in 1996 to the License Act state that an agent is not liable for a
misrepresentation or concealment of material fact by a party if: - ANSWER: The
licensee did not know of the falsity of the misrepresentation
One who hires an agent to represent him is called a: - ANSWER: principal
It is always a good idea to have: - ANSWER: The seller fill out the Seller's
Disclosure Notice
, 2|Page
A real estate brokerage firm that practices buyer agency only has a lot of
intermediary transactions. - ANSWER: false
Which of the following is a statutory defense for a lawsuit brought about by
DTPA? - ANSWER: Written information obtained from a government record
A licensee is not liable for a misrepresentation or a concealment of a material fact
made by a party to a real estate transaction if the seller did not disclose it to the
agent. - ANSWER: true
Actual awareness of a falsity, deception, or unfairness of an act under DTPA is
known as: - ANSWER: knowingly
The TREC was established in: - ANSWER: 1949
an exemption to using the Information About Brokerage Services form is: -
ANSWER: a lease for not more than 1 year
listings can be terminated at any time by mutual agreement - ANSWER: true
fiduciaries are: - ANSWER: Held to the highest degree of good faith, Required to
exclude selfish interest, Require to make disclosures of all relevant facts
According to TREC advertising rules, the definition of advertisement includes all
of the following, EXCEPT: - ANSWER: Communication from a licensee to his or
her client
real estate agents owe certain non-fiduciary duties to customers such as: -
ANSWER: honesty and fairness
LAW OF AGENCY CHAMPIONS EXAM|| ACCURATE
AND FREQUENTLY TESTED QUESTIONS AND 100%
CORRECT ANSWERS WITH RATIONALES|| LATEST
AND COMPLETE UPDATE WITH EXPERT VERIFIED
SOLUTIONS|| SURE PASS!!
Which of the following has the authority to suspend or revoke a Texas real estate
license? - ANSWER: TREC
Which of the following is an element of a listing agreement? - ANSWER: the
agreement to pay a stated commission, usually a percentage of the sales price
the IRS considers which of the following a violation of independent contractor
status? - ANSWER: salesperson is told to work set hours, guaranteed a monthly
minimum wage, has his licensing fees paid by the broker
the TAR buyer representation agreement in or text book: - ANSWER: authorizes
intermediary, authorizes the buyer to give the agent complete loyalty, establishes
an exclusive market area
The amendments in 1996 to the License Act state that an agent is not liable for a
misrepresentation or concealment of material fact by a party if: - ANSWER: The
licensee did not know of the falsity of the misrepresentation
One who hires an agent to represent him is called a: - ANSWER: principal
It is always a good idea to have: - ANSWER: The seller fill out the Seller's
Disclosure Notice
, 2|Page
A real estate brokerage firm that practices buyer agency only has a lot of
intermediary transactions. - ANSWER: false
Which of the following is a statutory defense for a lawsuit brought about by
DTPA? - ANSWER: Written information obtained from a government record
A licensee is not liable for a misrepresentation or a concealment of a material fact
made by a party to a real estate transaction if the seller did not disclose it to the
agent. - ANSWER: true
Actual awareness of a falsity, deception, or unfairness of an act under DTPA is
known as: - ANSWER: knowingly
The TREC was established in: - ANSWER: 1949
an exemption to using the Information About Brokerage Services form is: -
ANSWER: a lease for not more than 1 year
listings can be terminated at any time by mutual agreement - ANSWER: true
fiduciaries are: - ANSWER: Held to the highest degree of good faith, Required to
exclude selfish interest, Require to make disclosures of all relevant facts
According to TREC advertising rules, the definition of advertisement includes all
of the following, EXCEPT: - ANSWER: Communication from a licensee to his or
her client
real estate agents owe certain non-fiduciary duties to customers such as: -
ANSWER: honesty and fairness
