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Law of Agency Exam Questions and Solutions: Texas Real Estate License Exam Preparation, Exams of Advanced Education

Computer Systems Institute (CSI)Advanced Education

A comprehensive set of multiple-choice questions and verified solutions covering key concepts in the law of agency, specifically tailored for the texas real estate license exam. It covers topics such as agency relationships, fiduciary duties, listing agreements, intermediary transactions, and ethical considerations. A valuable resource for individuals preparing for the exam, offering insights into common exam questions and correct answers.

Typology: Exams

2024/2025

Available from 03/03/2025

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EXAM: LAW OF AGENCY – CHAMPIONS 2025
QUESTIONS AND VERIFIED SOLUTIONS|
ABSOLUTE SUCCESS GUARANTEED.
1. Which of the following has the authority to suspend or revoke a Texas
real estate license? - correct answer - TREC
2. Which of the following is an element of a listing agreement? - correct
answer - the agreement to pay a stated commission, usually a
percentage of the sales price
3. the IRS considers which of the following a violation of independent
contractor status? - correct answer - salesperson is told to work set
hours, guaranteed a monthly minimum wage, has his licensing fees paid
by the broker
4. the TAR buyer representation agreement in or text book: - correct
answer - authorizes intermediary, authorizes the buyer to give the agent
complete loyalty, establishes an exclusive market area
5. 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: - correct answer - The licensee did not know of the falsity of the
misrepresentation
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Download Law of Agency Exam Questions and Solutions: Texas Real Estate License Exam Preparation and more Exams Advanced Education in PDF only on Docsity!

EXAM: LAW OF AGENCY – CHAMPIONS 2025

QUESTIONS AND VERIFIED SOLUTIONS|

ABSOLUTE SUCCESS GUARANTEED.

  1. Which of the following has the authority to suspend or revoke a Texas real estate license? - correct answer - TREC
  2. Which of the following is an element of a listing agreement? - correct answer - the agreement to pay a stated commission, usually a percentage of the sales price
  3. the IRS considers which of the following a violation of independent contractor status? - correct answer - salesperson is told to work set hours, guaranteed a monthly minimum wage, has his licensing fees paid by the broker
  4. the TAR buyer representation agreement in or text book: - correct answer - authorizes intermediary, authorizes the buyer to give the agent complete loyalty, establishes an exclusive market area
  5. 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: - correct answer - The licensee did not know of the falsity of the misrepresentation
  1. One who hires an agent to represent him is called a: - correct answer - principal
  2. It is always a good idea to have: - correct answer - The seller fill out the Seller's Disclosure Notice
  3. A real estate brokerage firm that practices buyer agency only has a lot of intermediary transactions. - correct answer - false
  4. Which of the following is a statutory defense for a lawsuit brought about by DTPA? - correct answer - Written information obtained from a government record
  5. 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. - correct answer - true
  6. Actual awareness of a falsity, deception, or unfairness of an act under DTPA is known as: - correct answer - knowingly
  1. the best way to create an agency relationship is to do so: - correct answer - in writing
  2. a licensee must present the information about brokerage services form: - correct answer - at the first substantive discussion of a possible transaction
  3. when actions lead another person to assume that one is an agent, this is known as: - correct answer - ostensible agency
  4. listings may be terminated by: - correct answer - death, insanity, mutual agreement
  5. when one person acts for another on their behalf it is known as: - correct answer - an agency relationship
  6. Whether or not to appoint associates in an intermediary real estate transaction is: - correct answer - At the discretion of the broker
  7. In Texas, Worker's Compensation must be paid for real estate agents by brokers: - correct answer - false
  1. unlicensed assistants may: - correct answer - be a transaction coordinator
  2. a broker usually establishes buyer representation through a form known as a: - correct answer - buyer representation agreement
  3. for a broker to act as an intermediary there must be: - correct answer
    • written consent
  4. the real estate agent works for or on behalf of a: - correct answer - client
  5. All of the following are included in the Canons of Professional Ethics for real estate licensees, EXCEPT: - correct answer - patience
  6. data used for a CMA should be no older than: - correct answer - 6 months
  7. The Tax Equity and Fiscal Responsibility Act has which of the following tests for independent contractor status? - correct answer - The
  1. Usually, a defamation claim requires evidence of: - correct answer - A false statement made to someone other than the person who is allegedly defamed, A false statement, Damage to the person allegedly defamed by a false statement
  2. A broker is representing both sides in an in-house transaction. In this case, the broker is the: - correct answer - intermediary
  3. There can be a policies and procedures manual for a real estate agent who is an independent contractor. However, - correct answer - The broker cannot require mandatory compliance
  4. A signed employment agreement is necessary to: - correct answer - sue for commission
  5. An agent in ABC Realty has a listing that is being sold by a buyer's agent whose license is also with ABC Realty. The broker will most likely:
    • correct answer - Appoint the associates to represent their parties under intermediary rules
  6. The listing that allows the seller to list the property with multiple competing brokers at the same time and to sell the property personally without paying any broker a fee is a(n): - correct answer - open listing
  1. An agent creates a (n) ____________________ to give buyers and sellers an indication of the market value of a property. - correct answer - comparative market analysis
  2. Agency authority that is the result of the "norm," or what is considered customary, is: - correct answer - Implied authority
  3. A listing is terminated by any of the following, EXCEPT: - correct answer - The passage of exactly one year since the agreement was signed
  4. A broker has the power to terminate an agency agreement early, - correct answer - If the principal is not cooperating with the broker's efforts to market the property
  5. A real estate agent generally gets paid: - correct answer - commission
  6. Agents should always disclose whether or not a previous or current tenant has had AIDS or HIV-related illness. - correct answer - false
  1. Confidential information between client and agent is: - correct answer
    • Kept confidential forever
  2. Which of the following requirements must be satisfied if a broker seeks to enforce payment of a commission? - correct answer - The broker must have a valid real estate license, The broker must have a signed employment agreement with a promise by the client to pay a commission, The broker must be the procuring cause of sale
  3. A broker is obligated to treat which of the following fairly? - correct answer - customers, sellers, clients
  4. A licensee not associated with the client's broker but who is representing the client through a cooperative agreement with the client's broker is known as a: - correct answer - subagent