EXAM: LAW OF AGENCY –
CHAMPIONS QUESTIONS & ANSWERS
(RATED A+).
Which of the following has the authority to suspend or revoke a Texas real estate
license? - ANSWERTREC
Which of the following is an element of a listing agreement? - ANSWERthe
agreement to pay a stated commission, usually a percentage of the sales price
the IRS considers which of the following a violation of independent contractor status?
- ANSWERsalesperson is told to work set hours, guaranteed a monthly minimum
wage, has his licensing fees paid by the broker
the TAR buyer representation agreement in or text book: - ANSWERauthorizes
intermediary, authorizes the buyer to give the agent complete loyalty, establishes an
exclusive market area
Which of the following is a statutory defense for a lawsuit brought about by DTPA? -
ANSWERWritten information obtained from a government record
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. - ANSWERtrue
Actual awareness of a falsity, deception, or unfairness of an act under DTPA is
known as: - ANSWERknowingly
The TREC was established in: - ANSWER1949
an exemption to using the Information About Brokerage Services form is: -
ANSWERa lease for not more than 1 year
listings can be terminated at any time by mutual agreement - ANSWERtrue
fiduciaries are: - ANSWERHeld to the highest degree of good faith, Required to
exclude selfish interest, Require to make disclosures of all relevant facts
According to TREC advertising rules, the definition of advertisement includes all of
the following, EXCEPT: - ANSWERCommunication from a licensee to his or her
client
real estate agents owe certain non-fiduciary duties to customers such as: -
ANSWERhonesty and fairness
