Agency Practice Questions

Champions School of Real Estate - Law of Agency Practice Questions Agent Phillip received an earnest money check payable to the title company from a buyer. Five days later he found the check under some paperwork on his desk. He deposited the check immediately.Decide if the actions are in violation of TRELA and could result in the suspension or revocation of the agent's license.

• Violation of TRELA
• Not a violation - Correct Answers ✅A

The Texas Real Estate Commission was created in Choose the correct answer.

A) 1929

B) 1939

C) 1959

• 1949 - Correct Answers ✅D

Agent Dirk negotiated a transaction where the buyer wrote a $2000 earnest money deposit. The earnest money was deposited in Dirk's escrow account. The transaction fell through, and feeling sorry for the buyer, he refunded the earnest money without the consent of the seller. 1 / 4

Champions School of Real Estate - Law of Agency Practice Questions Decide if the actions are in violation of TRELA and could result in the suspension or revocation of the agent's license.

• Violation of TRELA
• Not a violation - Correct Answers ✅A

Part of the licensing process is to determine Choose the correct answer.

• Income potential
• Understanding of Sales
• Motivation for success
• Moral Character - Correct Answers ✅D

A broker may pay a fee to Choose the correct answer.

• Another Broker
• An unlicensed person as a referral
• An Attorney
• Another Broker's Sales Agent - Correct Answers ✅A 2 / 4

Champions School of Real Estate - Law of Agency Practice Questions Agent Dwayne discovered that a great way to get more listings was to tell homeowners in the neighborhood that a huge commercial project was about to commence that would seriously devalue property in the subdivision. The claim was false, but it did result in a number of listings.

• Violation of TRELA
• Not a violation - Correct Answers ✅A

Agent Willard got a call from a promising prospective buyer on one of the properties that he had put signs on without the owner's knowledge. He went ahead and began negotiating a sale knowing that the seller had not even put it on the market. His rationale was that "Everything is for sale at some price." Decide if the actions are in violation of TRELA and could result in the suspension or revocation of the agent's license.

• Violation of TRELA
• Not a violation - Correct Answers ✅A

Agent Maggie was showing properties to a buyer who inquired about the racial makeup of the neighborhood. She declined to respond to the inquiry. 3 / 4

Champions School of Real Estate - Law of Agency Practice Questions Decide if the actions are in violation of TRELA and could result in the suspension or revocation of the agent's license.

• Violation of TRELA
• Not a violation - Correct Answers ✅B

An agency relationship exists when one person, the _____, acts for or on behalf of another person, the _____.

• Client, agent
• Agent, principal
• Principal, agent
• Broker, customer - Correct Answers ✅B

Which of the following is grounds for suspension or revocation of a real estate license by TREC?

• Splitting a commission with a person other than a license

holder

• Splitting a commission with a Texas real estate license

holder

• Disclosing a material defect of a property
• All of these are grounds for suspension or revocation of a

real estate license - Correct Answers ✅A

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