LAW OF AGENCY CHAMPIONS TEXAS REAL ESTATE EXAM
LATEST 2024 QUESTIONS AND CORRECT VERIFIED ANSWERS
GRADED A+
Subagent - ANSWER-A license holder not associated with the seller's broker, but who is representing
the seller through a cooperative agreement, often through membership in a Multiple Listing Service
(MLS), with the seller's broker.
Cooperative Broker - ANSWER-A broker selling the listing of another broker. A cooperative broker
may complete the transaction as a subagent of the listing broker, or may represent the buyers under
an agency agreement; he also known as the other broker
Broker license holder - ANSWER-An individual holding a broker's license issued by TREC. Brokers may
act independently in conducting real estate transactions, or may engage other broker or sales agent
license holders to represent them in the conduct of their real estate business
Sales agent license holder - ANSWER-An individual holding a license issued by TREC an agent of the
sponsoring broker. He or she may conduct business only through his or her sponsoring broker
Broker Associate - ANSWER-A broker associated with and conducting all of his or her business as an
agent of another broker
Sales Associate - ANSWER-A sales agent or broker license holder associated with and conducting
business as an agent of his or her sponsoring broker
Seller's Agent - ANSWER-A broker representing the seller in a real estate transaction, also referred to
as a Seller's Broker, Listing Broker, or Listing Agent
Buyer's Agent - ANSWER-A broker representing the buyer in a real estate transaction, also referred to
as a Buyer's Broker, Selling Broker, or Selling Agent.
Landlord's Agent - ANSWER-A broker representing a landlord in a real estate transaction
, Tenant's Agent - ANSWER-A broker representing a tenant in a real estate transaction
License holders have two levels of responsibility - ANSWER-Public/Fiduciary
Duties to Customer - ANSWER-a. Honesty
b. Disclosure of material facts
c. Handle all funds with care
d. Be responsible for written or oral statements
Duties to Client - ANSWER-a. Put the interests of the client rst
b. Give full disclosure to the client (advice and opinions in addition to disclosing all pertinent facts -
both material and other)
c. Exhibit trust and honesty
d. Exercise good business judgment
e. Be loyal to the principal
f. Be competent
Duties of Client to Agent - ANSWER-Compensation,Reimbursement, Indemnification,Performance
Compensation - ANSWER-The fact that the agent should be paid on completion of the agency
Reimbursement - ANSWER-The fact that the agent should be reimbursed by the principal for
expenses incurred on behalf of the principal, above and beyond the expenses related to the sale
itself.
Fiduciary - ANSWER-A relationship based on trust
Agency - ANSWER-A relationship between two parties
Customer - ANSWER-A person who receives limited brokerage services without establishing an
agency relationship/Also known as 3rd party.
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