CHAMPIONS SCHOOL OF REAL ESTATE LAW OF AGENCY
EXAM LATEST 2024-2025 COMPLETE 350 QUESTIONS
AND CORRECT VERIFIED SOLUTIONS
CHAMPIONS SCHOOL OF REAL ESTATE LAW OF AGENCY EXAM
QUESTION: The principal is also known as - ANSWER-client
QUESTION: fiduciary relationship - ANSWER-a relationship founded on trust and confidence
QUESTION: Agency Relationship - ANSWER-Exists when one person (the agent) acts for, or on
behalf of another person (the principal).
QUESTION: the principal - ANSWER-is the one who hires and gives authority to the agent
QUESTION: Texas Real Estate License Act TRELA - ANSWER-Was passed 1939. The purpose is to
protect the public against unscrupulous brokers and sales agents.
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QUESTION: 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.
QUESTION: 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
QUESTION: 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
QUESTION: a broker works FOR - ANSWER-a client
QUESTION: a broker works WITH - ANSWER-a customer
QUESTION: how does a buyer become a client - ANSWER-by entering into a buyer
representation agreement with the broker
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QUESTION: 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.
QUESTION: An agency relationship exists when one person, the _____ acts for, or on behalf of
another person, the ______ - ANSWER-agent, principal
QUESTION: 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
QUESTION: The commission can deny licensure to an applicant based on the applicant's
_______________________ - ANSWER-moral character
QUESTION: Ostensible Agency - ANSWER-exists when actions lead another person to assume
that one is an agent.
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QUESTION: Agency by Ratification - ANSWER-Occurs when an agent acts without prior
authorization, and the principal, upon learning of this action, accepts it.
QUESTION: 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
QUESTION: Agency Authority - ANSWER-or rights, may also be a result of "the norm", or what is
considered customary in the business
QUESTION: Implied Authority - ANSWER-an agent's authority to do things not specifically
authorized in order to carry out express authority
QUESTION: 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 interest will conflict and must, in any direct dealing with the
principal, make full disclosure of all relevant facts and give the latter an opportunity to obtain
independent advice
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