TREC Law of Agency Practice Exam

A salesperson in real estate must demonstrate competence in conducting authorized activities as it is vital for ensuring that they operate effectively within their role and meet the expectations set by their governing bodies. Competence encompasses having the necessary skills, knowledge, and understanding to perform tasks such as negotiating, marketing properties, or providing accurate information about transactions to clients and stakeholders.

Being competent not only helps in achieving successful outcomes but also protects the interests of clients and helps maintain the integrity of the real estate profession. It is crucial for salespersons to be aware of their authorized activities and to perform them diligently rather than blindly or carelessly.

The other choices reflect misconceptions or misunderstandings related to the responsibilities of a salesperson. For instance, carrying out all real estate transactions is not a requirement, as they should focus on transactions within their scope of authority. Similarly, being unaware of limitations would be irresponsible, and the choice to ignore certain activities contradicts the need for personal accountability and professionalism expected in the field. Therefore, competence directly aligns with the ethical and practical expectations placed upon a salesperson in real estate.