CHAMPIONS REAL ESTATE EXAM: LAW OF

CHAMPIONS REAL ESTATE EXAM: LAW OF

AGENCY 2025 QUESTIONS AND

ANSWERS .

• This person hires an agent - correct answer - The Principal

• The agent works on behalf of this person - correct answer - the client

(principal)

• This type of agency allows for the greatest range of authority - correct

answer - Universal

• This is provided to the agent when there is written documentation that

the agency relationship exists. - correct answer - Express authority

• This is the most limited of all the agency relationships - correct answer -

Special agency

• This type of agency is created when a 3rd party believes that an agent

has authority that has NOT been granted by a principal - correct answer

• Agency by Estoppel 1 / 4

• This type of agency is created when actions lead another person to

assume that one is an agent (Example- you have a key to neighbors home and show the property) - correct answer - Ostensible Agency

• If a buyer hasn't signed a buyer's rep agreement, then who is

representing the buyer? - correct answer - No one

• This establishes a relationship with a broker - correct answer - The

Buyer/Tenant Representation agreement

• This can be written or oral - correct answer - Disclosure of

Representation

• These are required to place their own selfish interests behind that of

their clients. - correct answer - Fiduciaries

• A licensee isn't required to provide the IABS when... - correct answer
• the licensee meets with a party that is already represented

• / 4

• A broker is obligated to treat who honestly? - correct answer - client,

customer, and agents

• Broker must have written consent to act as... - correct answer - an

intermediary

• IABS form is the property of... - correct answer - TREC

Broker Bob is the broker/owner of ABC Realty. Agent Bill at ABC Realty is a listing agent. Agent Sue, also at ABC Realty, is working with a buyer who is being represented by the firm. Agent Sue's buyer wants to purchase Agent Bill's listing

16. In the above transaction, Broker Bob will: - correct answer - Remain

neutral and refrain from providing advice and opinion to either party

• The IABS should contain - correct answer - How the broker will be

compensated

• Broker Steve, having no agents, is a solo practitioner. He has a client

buyer that wants to purchase one of his listings. The process that Broker

Steve must use is: - correct answer - Intermediary without appointments

• / 4

• A fiduciary relationship is based on - correct answer - trust

• Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has

a buyer who wishes to Purchase Joe's listing. The buyer that Agent Sean is working with has chosen to not enter into an Agency relationship with City Realty.In the above transaction, who is representing the buyer? - correct answer - No body because the buyer is a customer.

• Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has

a buyer who wishes to Purchase Joe's listing. The buyer that Agent Sean is working with has chosen to not enter into an Agency relationship with City Realty.In the above transaction, who is City Realty representing? - correct answer - The seller, because City Realty is a subagent of ABC Realty in this transaction

• Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has

a buyer who wishes to Purchase Joe's listing. The buyer that Agent Sean is working with has chosen to not enter into an Agency relationship with City Realty.What type of transaction is this? - correct answer - cooperative (co-op)

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