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LAW OF AGENCY – CHAMPIONS
EXAM CORRECT QUESTIO NS &
ANSWERS ACCURA TE 100%
Question :Which of the following has the authority to
suspend or revoke a Texas real estate license?
Correct answer:TREC
Question :Which of the following is an element of a
listing agreement?
Correct answer:the agreement to pay a stated commission,
usually a percentage of the sales price
Question :the IRS considers which of the following a
violation of independent contractor status?
Correct answer:salesperson is told to work set hours,
guaranteed a monthly minimum wage, has his licensing fees paid by the broker
Question :the TAR buyer representation agreement in or
text book:
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Correct answer:authorizes intermediary, authorizes the
buyer to give the agent complete loyalty, establishes an exclusive market area
Question :The amendments in 1996 to the License Act
state that an agent is not liable for a misrepresentation or
concealment of material fact by a party if:
Correct answer:The licensee did not know of the falsity of
the misrepresentation
Question :One who hires an agent to represent him is
called a:
Correct answer:principal
Question :It is always a good idea to have:
Correct answer:The seller fill out the Seller's Disclosure
Notice
Question :A real estate brokerage firm that practices
buyer agency only has a lot of intermediary transactions.
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Correct answer:false
Question :Which of the following is a statutory defense
for a lawsuit brought about by DTPA?
Correct answer:Written information obtained from a
government record
Question :A licensee is not liable for a misrepresentation
or a concealment of a material fact made by a party to a real estate transaction if the seller did not disclose it to the agent.
Correct answer:true
Question :Actual awareness of a falsity, deception, or
unfairness of an act under DTPA is known as:
Correct answer:knowingly
Question :The TREC was established in:
Correct answer:1949
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Question :an exemption to using the Information About
Brokerage Services form is:
Correct answer:a lease for not more than 1 year
Question :listings can be terminated at any time by mutual
agreement
Correct answer:true
Question :fiduciaries are:
Correct answer:Held to the highest degree of good faith,
Required to exclude selfish interest, Require to make disclosures of all relevant facts
Question :According to TREC advertising rules, the
definition of advertisement includes all of the following,
EXCEPT:
Correct answer:Communication from a licensee to his or
her client