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Texas Real Estate Exam (State Portion):
Agency/Brokerage Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
Who is responsible for disclosing agency representation to the other party in a transaction?✔✔The license holder involved in the communication
What type of agency is created when a broker and a client sign a listing agreement?✔✔Express agency
When must a license holder provide the Information About Brokerage Services (IABS) form?✔✔At the first substantive communication about a real estate transaction
What is the main fiduciary duty violated when an agent withholds a material fact from their client?✔✔Disclosure
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What kind of agency is formed when a license holder acts as if they represent someone without a written agreement?✔✔Implied agency
In Texas, who can act as an intermediary in a real estate transaction?✔✔Only a broker, not a sales agent
What is the role of an appointed license holder in an intermediary relationship?✔✔To give advice and opinions to the party they are appointed to
What type of agency gives the agent the most authority to act on behalf of a client?✔✔Universal agency
When a broker represents both parties in a transaction without appointments, what must the broker do?✔✔Remain neutral and not give advice or opinions
Can a license holder ever receive a fee directly from a party to the transaction?
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