Law of Agency-Final Exam Review UPDATED Actual Exam Questions and CORRECT Answers
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Course
Law of Agency
Institution
Law Of Agency
Law of Agency-Final Exam Review
UPDATED Actual Exam Questions and
CORRECT Answers
What are the minimum services an agent
must offer; - CORRECT ANSWER- According TRELA subchapter 1101.557b states a
broker representing a party or listing real estate for sale is the party's agent and
1. May n...
Law of Agency-Final Exam Review
UPDATED Actual Exam Questions and
CORRECT Answers
What are the minimum services an agent
must offer; - CORRECT ANSWER- ✔✔According TRELA subchapter 1101.557b states a
broker representing a party or listing real estate for sale is the party's agent and
1. May not instruct another broker to directly or indirectly violate the sub chpt-1101.65b22,
2.Must inform the party if the broker Receives material information related to the transaction
to list, buy, sell, or lease the parties real estate, including the receipt of an offer by the broker;
and
3. Shall, at a minimum, answer the parties questions and present Any offered to or from the
party.
What is TRELA? - CORRECT ANSWER- ✔✔It is the law that establishes the duties of a
real estate licensee.
> TRAC is responsible for the administration of
TRELA. TREC consists of nine members - six brokers and three public members - who are
who serve staggered terms of six years. The governor, with the approval of the senate,
appoints three replacement members every two years.
Advice and opinions are given to whom: - CORRECT ANSWER- ✔✔Clients.
Who are the parties to agency agreement? - CORRECT ANSWER- ✔✔The seller, buyer,
broker or sales associate, tenant
What is a subagent; - CORRECT ANSWER- ✔✔A Licensee holder not sponsored by or
associated with the clients broker who is representing the client through a cooperative
agreement with the client broker. Also called the other broker.
If a principal instructs His agent to violate the law, what should an agent do? - CORRECT
ANSWER- ✔✔The agent should remove himself from dealing with the principal and not
violate the law.
, What is an attorney - in - fact; - CORRECT ANSWER- ✔✔a person authorized to act for
another under a power of attorney. This person is not necessarily a licensed attorney.
Under what conditions may a broker buy property listed with the broker; - CORRECT
ANSWER- ✔✔Only with full disclosure to all parties in the transaction.
What is agency by ramification: - CORRECT ANSWER- ✔✔Occurs when a principal gain
some benefit from a previously unauthorized act of an agent, and the principals, on learning
of the act, do not deny that the agent has authority to perform such an act on their behalf.
A sellers subagent is working with a buyer - who does the sub agent have a fiduciary
relationship with, the buyer or the seller? - CORRECT ANSWER- ✔✔The seller.
The person receiving services, but who is not represented is called? - CORRECT ANSWER-
✔✔The customer.
May the listing agent disclose the selling motivation to a buyer; - CORRECT ANSWER-
✔✔No, that is a breach of fiduciary responsibility.
In a real estate transaction, who do the buyer and/or seller inter into a contract with to create
the agency relationship - the broker or salesperson: - CORRECT ANSWER- ✔✔The broker.
What is agency educational requirement. - CORRECT ANSWER- ✔✔Licensee must show
evidence of a minimum of 30 clock hours - 2 semester hours - in the law of agency.
What happens to the fiduciary duties when the agency relationship terminates: - CORRECT
ANSWER- ✔✔The duty of confidentiality continues after the termination of an agency.
What does TRELA require in regard to the duration of a listing or buyer representation
agreement: - CORRECT ANSWER- ✔✔It requires a expiration or termination date.
Must a buyer believe that he is represented in order for agency to exist: - CORRECT
ANSWER- ✔✔YES, expressed agency
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