CHAMPIONS SCHOOL OF REAL ESTATE LAW OF AGENCY EXAM
COMPLETE 300 QUESTIONS AND DETAILED CORRECT
ANSWERS LATEST 2024-2025 JUST RALEASED
Champions School Of Real Estate LAW OF AGENCY EXAM A
What does the Consumer Protection Notice(CN1-2) notify of? - ANSWER-How to file a
complaint against the license holder.
The Recovery Trust Account.
TREC regulates brokers, sales agents, and inspectors among others.
__________requires that TREC investigates complaints against license holders according to a
risk-based approach. - ANSWER-The secretary of the Commission
Who can suspend or revoke a sales agent license under DTPA violation? - ANSWER-TREC
The Deceptive Trade Practices Act is found in the? - ANSWER-Texas Business and Commerce
Code
According to DTPA, trade and commerce includes the __________of any good or service
affecting the people of Texas. - ANSWER-Advertising
Distribution
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Offering for sale or lease
A buyer is? - ANSWER-Someone who wants to buy a home and is on a timeline to do so
Which of the following actions creates risk for the broker? - ANSWER-Mishandling trust funds.
Unintentionally creating an unwritten agency relationship with a potential buyer/ seller.
Failing to give the proper disclosures in a timely manner.
TREC rules require that most records for brokerage firms be retained for at least_______years?
- ANSWER-4
The ___________ makes it illegal to practice any act of real estate brokerage with out a license.
- ANSWER-TRELA
Section 1101.651 of the License Act lists _______ specific violations that can result in the
suspension or revocation or revocation of a real estate license. - ANSWER-30
The license Act provides for two types of licenses to be issued, a _______ and
a_____________? - ANSWER-Broker and a sales person
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The Texas Real Estate Commission is not concerned with and agent's earnings and does not
involve itself in? - ANSWER-Brokerage disputes
Buyers are increasingly discovering the benefits of being represented in a purchase, and often
choose to become ___________ by entering into an __________ with the broker. - ANSWER-
Clients, agency agreement
An agency relationship exists when one person,___________, acts for or on behalf of another
person, _____________, who is also know as ____________. This is a _______________
relationship, meaning that it is a relationship based on trust. - ANSWER-the agent, the principal,
the client, fiduciary
_____________ refers to the fact that the agent should be paid on completion of the agency. -
ANSWER-compensation
____________ means the principal is expected to preform as promised in the agency
agreement. - ANSWER-Performance
_________ means that the principal will protect the agent from suffering a loss due to the
agent's reliance on information received from the principal. - ANSWER-Indemnification
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The listing agreement or buyer representation agreement is an ____________. To collect a
commission, brokers must prove that they were employed to sell the property. - ANSWER-
employment contract
Any attempt by a group of brokers to set the commission rates in their area or between a group
of brokerage firms would be considered illegal price fixing. The federal laws that have the
greatest impact in this area are the ________ and the ____________ . - ANSWER-Sherman Act,
Clayton Act
The duties we know as __________ apply in all states, and understanding these duties on the
highest level establishes the agent's credibility and competitive standing in the marketplace. -
ANSWER-OLDCAR
A benefit of a buyer-agency relationship is assistance in ____________. Buyers' agents will have
a number of trusted lenders to refer, which is preferable to the random selection of lenders. -
ANSWER-obtaining financing
when written provisions are in conflict with oral provisions, the _____________ ones virtually
always prevail. - ANSWER-Written
An Agent may not ___________, _______________, or otherwise ___________ with a
customer in a dishonest matter. - ANSWER-deceive, defraud, deal
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