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Law of Agency - Champions School of Real Estate Exam Questions and Complete Solutions Graded A+.
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Law of Agency - Champions School of Real Estate Exam Questions and Complete Solutions Graded A+.
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Law of Agency - Champions School ofReal Estate Exam Questions and
Complete Solutions Graded A+
The principal is also known as - Answer: client
fiduciary relationship - Answer: a relationship founded on trust and confidence
Agency Relationship - Answer: Exists when one person (the agent) acts for, or on
behalf of another person (the principal).
the principal - Answer: is the one who hires and gives authority to the agent
Texas Real Estate License Act TRELA - Answer: Was passed 1939. The purpose is to protect the public
against unscrupulous brokers and sales agents.
Texas Real Estate Commission TREC - Answer: Was created to enforce and administer TRELA in 1949.
The purpose of this act is to protect the public against unscrupulous brokers and sales agents.
A licensed broker may not pay a commission to or otherwise compensate a person directly or indirectly
for performing an act of a broker unless the person is... - Answer: a license holder or a real estate broker
licensed in another state
TRELA may suspend or revoke a license or take other disciplinary action if the license holder, while
engaged in real estate brokerage engages in... - Answer: conduct that is dishonest or in bad faith or that
demonstrates untrustworthiness
a broker works FOR - Answer: a client
a broker works WITH - Answer: a customer
, how does a buyer become a client - Answer: by entering into a buyer representation agreement with the
broker
Subagent - Answer: A license holder not associated with the seller's broker, but who is representing the
seller through a cooperative agreement, often through membership in a Multiple Listing Service (MLS),
with the seller's broker.
An agency relationship exists when one person, the _____ acts for, or on behalf of another person, the
______ - Answer: agent, principal
which of the following is grounds for suspension or revocation of license by TREC? - Answer: splitting
commission with a person other than a license holder
The commission can deny licensure to an applicant based on the applicant's _______________________
- Answer: moral character
Ostensible Agency - Answer: exists when actions lead another person to assume that one is an agent.
Agency by Ratification - Answer: Occurs when an agent acts without prior authorization, and the
principal, upon learning of this action, accepts it.
agency coupled with an interest - Answer: When a broker is the owner of a property that is being sold,
or when a broker is interested in buying a property, we have agency coupled with an interest
Agency Authority - Answer: or rights, may also be a result of "the norm", or what is considered
customary in the business
Implied Authority - Answer: an agent's authority to do things not specifically authorized in order to carry
out express authority
Fiduciaries - Answer: are held to the highest amount of good faith, are required to exclude all selfish
interest, are prohibited from putting themselves in positions where personal interest and representative
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