TREC Law of Agency Practice Exam

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• What role does the sponsoring broker play for a salesperson?
• What kind of fee is considered acceptable for a referral made by an unlicensed person?
• What should be prioritized in a landlord representation strategy?
• Which of the following is a critical duty an agent owes to their principal?
• What trend has been observed regarding subagency in recent years?
• Is dual agency legal in Texas?
• In the context of a buyer’s agency agreement, who is typically responsible for paying the commission?
• Which action is permissible for a broker in a buyer's agency relationship?
• What crucial information must agents provide to their clients according to ethical standards?
• Who is responsible for completing the Seller's Disclosure Notice?
• What is typically included in an Office Policy Manual?
• What is the term for a broker who represents both the seller and the buyer in a transaction?
• What role do "TREC Standardized Statewide Forms" play in real estate transactions?
• According to the law, who is the broker liable to for the occupational conduct of the broker and his agents?
• Who is primarily responsible for ensuring compliance with agency disclosure requirements?
• What is expected of a salesperson in relation to their authorized activities?
• Is the Information About Brokerage Services form required to be provided to buyer prospects at an open house?
• What is agency in commercial real estate?
• What are the core principles that agents should adhere to according to the Canons of Professional Conduct for Real Estate Licensees?
• Which aspect would NOT typically fall under the responsibilities of a landlord representative?
• Customers in the context of agency practice are referred to as:
• Which role may involve representing multiple clients simultaneously?
• What does 'agency termination' involve?
• What does "undisclosed dual agency" mean in agency law?
• What does "exclusive right to sell" mean in real estate?
• Which aspect is a priority for a tenant during lease discussions?
• What role does TREC play in handling consumer complaints?
• When should disclosure of agency occur in a real estate transaction?
• What is one of the first topics that should be addressed in a broker's policy manual?
• What typically triggers the commission for a real estate agent in a contingency listing?
• What happens to a listing agreement upon expiration?
• Which characteristic is protected under the Equal Credit Opportunity Act?
• What are the types of misrepresentation?
• Which action exemplifies loyalty in a principal-agent relationship?
• Which of the following is NOT a type of misrepresentation?
• What is implied agency?
• Who must brokers clearly identify their representation to in a transaction?
• Which code corresponds to the Texas Deceptive Trade Practices-Consumer Protection Act?
• What are the "TREC Standardized Statewide Forms" designed for?
• What is one key responsibility of a transactional broker?
• What must a real estate agent disclose about their agency?
• When should Information About Brokerage Services be provided and explained?
• What does the term "ratification" refer to in agency law?
• What does 'informed consent' signify in the context of agency law?
• What does the term "commingle" refer to in a brokerage context?
• What does the Texas Real Estate License Act say about brokers representing both buyer and seller?
• What is meant by "client advocacy" in the context of agency?
• Which of the following aspects would a tenant representative focus on during lease negotiations?
• How can buyer representation be established according to the TAR agreement?
• In a dual agency situation, which of the following must be disclosed?
• What is the relationship called when one party grants authority to another?
• Landlord representation typically involves which of the following activities?
• Which group is primarily served by the Information about Brokerages Services form?
• What must be included in the appointment of agents for an intermediary transaction?
• What aspect of property will customers NOT receive advice on?
• What do psychological stigmas regarding a property refer to?
• The agent acting under a power of attorney is known as:
• In what case must an agent disclose their status as a licensed real estate agent?
• What must occur for subagency to be applicable?
• What is a characteristic of a 'net listing'?
• Which type of establishments are subject to the Deceptive Trade Practices Act?
• Which role is primarily concerned with helping tenants understand lease options?
• What is the purpose of professionalism in agency relationships?
• What is the principal's primary obligation to the agent?
• If a listing agreement is not in writing, what legal requirement is not satisfied?
• What is the role of a designated agent?
• What is the general definition of law?
• What can happen if a license holder does not disclose who they represent in a transaction?
• How long do individuals have to file a DTPA lawsuit after a deceptive act occurs?
• What is the impact of the agent not making their representation clear to all parties?
• What does "sub-agency" refer to in the context of agency relationships?
• Which of the following accurately describes the role of a subagent?
• Which statement is true regarding a broker's obligations?
• What happens to the fiduciary duties owed by an agent if the agency relationship ends?
• What is a primary duty of real estate brokers regarding commission?
• Which of the following describes the situation in which 'agency by necessity' can arise?
• What can Errors and Omissions insurance potentially cover?
• What term refers to a false statement of fact made by one party that induces another party into a contract?
• In which scenario would a broker not receive a commission if the property is sold?
• In which types of transactions is agency disclosure required?
• What is an example of a situation requiring agency disclosure?
• Which of the following is classified as a Federal law?
• What does Paragraph 8 of the TAR Residential Buyer/Tenant Representation Agreement provide information about?
• What is the definition of dual agency?
• How does TREC regulate agent behavior?
• What term describes a false statement of fact that induces someone into a contract?
• Why is "market knowledge" significant for an agent?
• Which of the following is a focus of the Fair Credit Reporting Act?
• What does the TAR Intermediary Relationship Notice name?
• Which condition can lead to an agent breaching fiduciary duties?
• In a situation where a licensee works with both buyers and sellers in a transaction, what is this known as?
• Which of the following actions could signify an agent operating under implied authority?
• What consequence might arise from failing to disclose an agency relationship?
• Where must broker and salesperson licenses be displayed according to TRELA?
• What defines an 'open listing'?
• How does 'misrepresentation' manifest in the context of agency?
• Which type of listing involves a commission only if the agent finds a buyer?
• What does "fair housing" refer to in agency contexts?
• In a subagency transaction, who does the broker working with the buyer owe a fiduciary duty to?
• Why is it essential for real estate agents to keep accurate records?
• What important requirement is specified for brokers under Texas law?
• In a property management agreement, who is the broker's client?
• What is a key characteristic of Errors and Omissions Insurance in Texas?
• In the context of property leasing, what is a key activity for a landlord representative?
• What type of authority allows an agent to perform actions not explicitly stated in the agreement?
• Who is defined as someone authorized to act for or in place of another?
• Who is exempt from needing a real estate license according to TRELA?
• What type of information will not be provided to customers?
• What should a broker do when they receive multiple offers on a property?
• What does the term ''Gratuitous Agency'' refer to in a real estate context?
• For an intermediary transaction to occur, how many companies must be involved?
• How is "confidentiality" defined in the agency context?
• In the context of a broker's responsibilities, what is a key requirement related to disclosures?
• According to the Independent Contractor Agreement, where are all fees paid?
• What is required for an agent to be compensated according to their contract?
• What does misrepresentation typically involve in real estate?
• What should be disclosed to customers regarding a property?
• How many companies must be involved in a subagency transaction?
• What must brokers maintain regarding their sponsored salespeople?
• In what way does tenant representation support tenants?
• What can a licensee in Texas choose to do regarding their transactions?
• What does the Texas Payday Law cover?
• What type of duty relates to the agent's obligation to keep client information secret?
• What is an essential requirement before an agent can act under 'agency by necessity'?
• What does disclosure of agency require in Texas real estate?
• What defines an agent in real estate?
• The salespersons sponsored by a broker owe fiduciary duties to:
• What fiduciary duty does the broker have while representing the seller as the subagent?
• Where can information about commission, fee structures, and advertising usually be found?
• In an agency relationship, the agent is considered a fiduciary because they owe duties of:
• Why is an oral agreement considered non-enforceable?
• What is the consequence of a seller’s death regarding agency?
• What is the main focus of the "Texas Real Estate Broker License Act"?
• What analysis might a broker perform for a seller to aid in pricing?
• Which of the following best describes the goal of tenant representation?
• What must an agent do for clients to establish a commission entitlement according to real estate guidelines?
• What does offering a free CMA to a potential client exemplify?
• Which of the following accurately describes a broker's role with regards to property pricing?
• What type of relationship exists between the seller and the buyer in agency practice?
• Which of the following is NOT part of a broker's minimum services?
• What is the maximum fee an unlicensed person can receive for a referral?
• What is the primary purpose of the Texas Real Estate License Act?
• What does the Statute of Frauds require regarding certain contracts?
• What is the fiduciary duty of an agent?
• What kind of activities does the Texas Payday Law specifically exclude?
• What is the significance of "market knowledge" in real estate?
• What is one key advantage of being an independent contractor in real estate?
• What describes 'intentional dual representation'?
• What occurs when a buyer asks the agent for advice and opinions?
• What is a significant benefit of accurate documentation for real estate agents?
• What crime does the Texas Real Estate License Act establish for unlicensed persons?
• What does the Equal Credit Opportunity Act prohibit in credit transactions?
• Which agreement is commonly used as a legal and binding contract for buyer representation?
• What determines whether an agency relationship exists between an agent and a buyer or seller?
• From whom may a salesperson accept a commission?
• What type of insurance is Errors and Omissions Insurance classified as?
• When acting as a broker with a buyer as a customer, which of the following can the broker do?
• What must a broker representing a buyer do regarding the listing broker?
• What is one implication of an agent failing to disclose their relationship with clients?
• What must a broker and sponsored salesperson owe to a buyer customer?
• What is the effect of a misleading statement in a contract?
• In a buyer agency situation, how does the broker represent the buyer?
• What is another name for the seller's broker in real estate?
• What is the primary purpose of a "listing presentation"?
• In the leasing process, who is responsible for conducting property viewings for potential tenants?
• What is one common duty of a landlord representative?
• What effect does a buyer's agency agreement have on commission?
• In real estate agency, what does the term "commission" refer to?
• Which document outlines agency relationships in Texas real estate transactions?
• Who is responsible for title disclosures to the buyer?
• If a broker assists a buyer without a representation agreement, what is the broker's status?
• Which of the following is true about a broker's policy manual?
• What does a real estate commission typically represent?
• What term describes a company that works with both sellers and buyers but not in the same transaction?
• In the case of dual agency, what is a potential conflict of interest?
• Why is it essential for agents to understand local zoning laws?
• What authority does a power of attorney provide to the attorney in fact?
• Which of the following is NOT a duty owed by an agent to the client in a fiduciary relationship?
• Which of the following is a requirement for brokers regarding their agents?
• What can a business owner ask regarding service animals?
• What can be said about the enforceability of oral agreements in real estate?
• What should always take priority according to a broker's ethical responsibilities?
• What happens when non-marital property is commingled with marital property in community property states?
• Who ultimately makes the decision regarding the listing price of a property?
• What is indicated by a 'buyer’s representation agreement'?
• Which type of properties is a broker with a buyer's agreement more likely to show?
• What is a possible conflict of interest for a representative acting for both landlord and tenant?
• How often must all license holders renew their licenses?
• What is the role of transactional brokers?
• What is the primary role of a broker in real estate transactions?
• What constitutes 'negligent misrepresentation' in an agency relationship?
• What must a broker disclose when selling their own property?
• Which laws regulate consumer affairs in the context of fair debt collection and credit reporting?
• What is the purpose of "Agency Disclosure" for consumers?
• Where can information on commission structure and independent contractor agreements typically be found?
• Which aspect of misrepresentation is true?
• What is a listing agreement in real estate?
• In the context of the Law of Agency, who is considered a principal?
• What authority does the listing agreement give to the broker?
• What is the primary purpose of the Law of Agency in real estate transactions?
• What is the primary focus of tenant representation in property leasing?
• What is necessary for an agent to sue for a commission?
• What is the status of the broker when the buyer is a customer?
• What is a key benefit of having a designated agent?
• What is the primary interest a broker must prioritize according to agency law?
• What does 'agency by necessity' allow an agent to do?
• What condition must be met before a salesperson may act in their capacity?
• Why must agents understand contract law?
• How does negotiation fit within the framework of agency law?
• What is the primary role of an agent in an intermediary transaction?
• To satisfy the Statute of Frauds, what must a listing agreement be?
• What should an agent always do when working with a client?
• To whom must brokers explain agency responsibilities?
• How can real estate agents prevent potential legal issues with clients?
• Who is the Independent Contractor Agreement between?
• What must a broker advise a buyer to obtain regarding property transactions?
• Who is authorized to provide legal advice in real estate transactions?
• What does the "Agent's Broker Compensation" clause specify?
• What year was the Texas Deceptive Trade Practices-Consumer Protection Act enacted?
• Which fiduciary duty survives the termination of an agency agreement?
• How does maintaining clear communication help real estate agents?
• Who is referred to as the client in a professional services context?
• May an unlicensed person call to set appointments for a broker?
• If a salesperson receives a request for a document from a person who signed it, what must they do?
• What can lead to legal liability for an agent?
• What does the Texas Real Estate License Act require concerning a broker's license?
• What is a common reason brokers are sued?
• What must an agent provide to a prospect during their first meeting?
• What is a feature of an intermediary transaction?
• In which type of court can misrepresentations be heard?
• What legal framework is designed to prevent businesses from engaging in fraud and unfair competitive practices?
• What crime involves using dishonest methods to take something valuable from another person?
• How often should a broker review their written policies and procedures manual?
• Who should provide the Information About Brokerage Services form?
• What does the TAR Residential Buyer/Tenant Representation Agreement allow the buyer's broker to do?
• What type of agent can perform any acts the principal may perform?
• What is the primary benefit of a "broker open house" for an agency?
• How can an agency relationship be established?
• What is co-brokerage?
• What relationship exists between a broker and the client they represent?
• When is a Buyer's Representation Agreement enforceable?
• Which of the following acts is NOT included in the laws regulating consumer affairs?
• Which of the following is NOT a characteristic of a universal agent?
• What is the purpose of the TREC Information About Brokerage Services form?
• When can an agent be held liable for a breach of duty?
• What is meant by express agency?
• What is the purpose of TREC's required continuing education for agents?
• What does the TREC Consumer Protection Notice aim to accomplish?
• What types of disclosures are agents required to make to clients?
• When a broker is a subagent of the seller, the broker is working with the buyer as what?
• What is a critical step for brokers when working with multiple offers?
• What does dual representation in real estate entail?
• Which statement is true regarding a buyer's representation agreement?
• Which of the following is true about representing buyers and subagency?
• What could be the consequence of engaging in fraudulent misrepresentation?
• What must an apartment locator office display?
• Which of the following correctly describes a broker's relationship with both parties in a dual agency?
• Who would primarily handle the legal aspects of a lease agreement with tenants?
• How should commission splits with other brokers be addressed?
• What is the relationship called between a principal and the agent representing him?