Exam: Law of Agency – Champions | 60
Questions with 100% Correct Answers | Latest Update | Verified
Question : Which of the following has the authority to
suspend or revoke a Texas real estate license?
Correct answer: TREC
Question : Which of the following is an element of a listing
agreement?
Correct answer: the agreement to pay a stated commission,
usually a percentage of the sales price
Question : the IRS considers which of the following a
violation of independent contractor status?
Correct answer: salesperson is told to work set hours,
guaranteed a monthly minimum wage, has his licensing fees paid by the broker
Question : the TAR buyer representation agreement in or text
book:
Correct answer: authorizes intermediary, authorizes the buyer
to give the agent complete loyalty, establishes an exclusive market area
Question : The amendments in 1996 to the License Act state
that an agent is not liable for a misrepresentation or
concealment of material fact by a party if:
Correct answer: The licensee did not know of the falsity of
the misrepresentation
Question : One who hires an agent to represent him is called
a:
Correct answer: principal
Question : It is always a good idea to have:
Correct answer: The seller fill out the Seller's Disclosure
Notice
Question : A real estate brokerage firm that practices buyer
agency only has a lot of intermediary transactions.
Correct answer: false
Question : Which of the following is a statutory defense for a
lawsuit brought about by DTPA?
Correct answer: Written information obtained from a
government record
Question : 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.
Correct answer: true
Question : Actual awareness of a falsity, deception, or
unfairness of an act under DTPA is known as:
Correct answer: knowingly
Question : The TREC was established in:
Correct answer: 1949
Question : an exemption to using the Information About
Brokerage Services form is:
Correct answer: a lease for not more than 1 year
Question : listings can be terminated at any time by mutual
agreement
Correct answer: true
Question : fiduciaries are:
Correct answer: Held to the highest degree of good faith,
Required to exclude selfish interest, Require to make disclosures of all relevant facts
Question : According to TREC advertising rules, the
definition of advertisement includes all of the following,
EXCEPT:
Correct answer: Communication from a licensee to his or her
client