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Texas Law of AgencyFinal Exam–RELE 2301
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Texas Law of Agency Eighth EditionTexas Law of Agency
Final Exam – RELE 2301
1. An owner of several apartment complexes hires a broker to manage her properties. The broker
approves all tenants, makes decisions regarding repairs, pays all expenses for the owner, signs all
rental agreements, and hires/fires all apartment employees. The relationship between the owner
and the property manager is one of
a. general agency.
b. nonagency.
c. special agency.
d. universal agency.
2. A buyer is interested in finding a single-family residential property. One of the buyer's many
requirements is that the local elementary school be a feeder school into the John Jay Middle
School. A salesperson shows the buyer several properties meeting her various financial and size
requirements. The buyer ultimately purchased a property but later found that the elementary
school did not feed into John Jay Middle School. The salesperson does not have children and
was not aware that the listing broker did not correct the MLS when the school boundaries
changed in the fall. The salesperson
a. misrepresented by omission.
b. misrepresented by commission.
c. misrepresented by fraud.
d. did not misrepresent.
3. A broker is previewing a For-Sale-by-Owner (FSBO) property to determine if it meets the
requirements of her buyer-client. While touring the property with the FSBO, which statement
would cause the broker to be in breach of fiduciary duty to the buyer?
a. "My buyer would like to have a fenced yard for her dogs."
b. "My buyer will need you to agree to seller financing because she has a low credit score."
c. "Your asking price is slightly above the market for this area."
d. "I notice there are no walk-in closets."
4. The type of listing contract that guarantees the listing broker will be paid a commission if
anyone, including the seller, finds a buyer for the property, is the
a. exclusive-right-to sell listing.
b. open listing.
c. exclusive-agency listing.
d. either the exclusive-right-to-sell or the exclusive-agency listing.
5. A buyer signs an exclusive-right-to-buy agreement with a broker to be her buyer’s agent and
which promises a 2% commission from either the buyer or a seller if the buyer purchases a
property during the period of the contract. While driving home from work, the buyer stops to
©2016 Kaplan, Inc.
May be reproduced for educational uses only.
, Texas Law of Agency Eighth Edition
preview a FSBO property. The seller indicates that they will not pay any brokerage fees. If the
buyer purchases the FSBO property, which is a TRUE statement?
a. The broker has not earned her commission because the buyer found her own property.
b. The FSBO seller must pay the buyer‘s commission because it is guaranteed in buyer
agency contract.
c. The broker earned her commission, and the buyer is contractually bound to pay if the
FSBO seller refuses.
d. Neither the FSBO seller or buyer are contractually bound to pay the broker.
6. Which of the following factual comments to the seller by the seller's appointed licensee would
be permitted even without the written permission of the buyer in a fully authorized intermediary
relationship with appointments?
a. "The buyer would be willing to pay more than the list price if you agree to pay some of
their closing costs."
b. "The buyer is truly motivated to close this deal because their lease expires on their
apartment in 30 days."
c. "Offering to pay some of a buyer's closing costs often encourages them to make offers
closer to the asking price."
d. "This buyer must go with an FHA-insured loan because they cannot qualify for a
conventional loan."
7. A salesperson has been focusing on property management while sponsored by another broker
over the last seven years. The salesperson has just received his broker's license and immediately
opens his own brokerage office. Numerous licensees with whom he worked in the past approach
him for sponsorship, indicating a desire to do residential and commercial sales. The new broker
has little experience in either area. Although the new broker is anxious to get started, he is
particularly concerned about his limited experience in residential and commercial sales. The new
broker
a. would be prohibited by TRELA and TREC from offering residential and commercial
services until he demonstrated competence in those areas.
b. must offer the public all forms of brokerage and agency services that are authorized by
TRELA.
c. should not agree to sponsor anyone until he has developed a written office policies and
procedures manual.
d. cannot be held liable for any mistakes of his sponsored licensees anyway.
8. A broker from ABC Realty represents a buyer who wishes to negotiate on a property listed by
XYZ Realty in a different real estate firm. During this transaction, which broker(s) may act as an
intermediary?
a. There is no need for intermediary in this transaction
b. The broker from ABC Realty
c. The broker from XYZ Realty
d. Both the brokers
©2016 Kaplan, Inc.
May be reproduced for educational uses only.
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