Champions Real Estate Exam: Law of Agency questions with complete solution
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Champions Real Estate
Institution
Champions Real Estate
complete study questions in concepts of the creation of agency relationships,Understanding the legal implications of misrepresentation and the responsibilities involved in agency relationships.100 % answered.
Champions Real Estate Exam: Law of
Agency
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
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
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
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
,Champions Real Estate Exam: Law of
Agency
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
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)
An exemption to using the Information About Brokerage Services form is: -
correct answer ✔ a lease for less than 1 year with no sale anticipated
A licensee not associated with the client's broker but who is representing the
client through a
cooperative agreement with the client's broker is known as: - correct answer ✔
Subagent
This must be in at least 10 point type, must have the exact language prescribed in
the License Act
and must be provided to a buyer or seller at the first substantive discussion of a
real estate
transaction - correct answer ✔ IABS (Information About Brokerage Services)
,Champions Real Estate Exam: Law of
Agency
Jeffrey wants to see property that your company has listed; he does not want to
be represented.
The agent must: - correct answer ✔ give Jeffrey the IABS form
A licensee must present the Information About Brokerage Services form: - correct
answer ✔ at the first substantive discussion of a real estate transaction
A licensee has a listing with a seller and has a buyer's representation agreement
signed with a
buyer who desires to purchase this agent's listing. How is the agent operating? -
correct answer ✔ as a non-appointed associate in an Intermediary relationship
TREC was established in: - correct answer ✔ 1949
Which of the following is the real estate licensing authority in Texas? - correct
answer ✔ TREC
A termination date in a listing agreement must be: - correct answer ✔ definite
Which of the following is NOT an agent's duty to a client? - correct answer ✔
Trust
These are the duties: OLDCAR: Obedience, loyalty, disclosure, confidentiality,
accounting, reasonable care
The duty of ___________ means that an agent must follow all of the lawful
instructions of
the client. - correct answer ✔ obedience
Jerome is a licensed agent who desires to sell his mother's home. Jerome has the
property
listed with his brokerage firm and finds a buyer himself to buy mom's home.
Jerome should: - correct answer ✔ Disclose to the buyer in writing that the seller
is his mother.
If an agent sells their own property, acting as a principal, the agent must: - correct
answer ✔ disclose to the party in writing that they are a licensed agent
Confidential information between client and agent should be: - correct answer ✔
kept confidential forever
In most states other than Texas, the most common method of dealing with in-
house
transactions between client buyers and sellers is: - correct answer ✔ dual agency
When handling escrow funds for clients, the License Act requires that funds be
deposited in
, Champions Real Estate Exam: Law of
Agency
a "reasonable time". A reasonable time is defined as: - correct answer ✔ 2
business days
The listing agreement should contain: - correct answer ✔ the legal description of
the property
Which of the following are elements of a listing? - correct answer ✔ the terms of
sale, such as the sales price and financing terms acceptable to the seller.
Sam listed his property with three different real estate brokers. In each
agreement he reserved
the right to sell the property himself without paying a commission. The type of
listing that
Sam signed with each broker was an: - correct answer ✔ open listing
Data used for a CMA should be no older than: - correct answer ✔ 6 months
The report used to give a seller or buyer an indication of market value is called: -
correct answer ✔ Comparative Market Analysis
Listings may be terminated by: - correct answer ✔ death, either party - broker or
client, or mutual agreement
Listings are the property of the: - correct answer ✔ broker
Duties of principal to agent - correct answer ✔ CRIP: Compensation,
Reimbursement, Indemnification (protect the agent from suffering a loss due to
the
agent's reliance in information received from the principal), Performance
If a broker dies what happens to the listing with the seller? - correct answer ✔ it
automatically terminates
If a broker sells a property on behalf of a seller without a signed listing
agreement, the courts
will most likely declare that the broker is: - correct answer ✔ a volunteer, an
agent in a listing agreement that is unenforceable against the seller, and unable to
enforce payment of the commission
Commission rates are set by? - correct answer ✔ client and broker
The TAR® Buyer Representation Agreement in our textbook: - correct answer ✔
authorizes Intermediary, is limited to the market area designated in the
agreement and authorizes the agent to show properties to competing buyers
If a broker's agents are independent contractors, there can be a policies and
procedures manual
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