Law of Agency - Champions Test Questions With Complete Solutions A FIDUCIARY RELATIONSHIP - Correct Answers ✅A
RELATIONSHIP
WHERE THE AGENT ACTS ON BEHALF OF THE CLIENT
A COOPERATIVE BROKER - Correct Answers ✅SELLS THE
LISTING OF ANOTHER BROKER
UNSCRUPULOUS LICENSE HOLDERS - Correct Answers
✅THE TEXAS REAL ESTATE COMMISSION'S MAIN PURPOSE IS
TO PROTECT THE PUBLIC FROM
AGENCY - Correct Answers ✅AN AGENCY RELATIONSHIP
EXISTS WHEN ONE PERSON ACTS FOR OR ON BEHALF OF
ANOTHER PERSON.
The licensee did not know of the falsity of the misrepresentation - Correct Answers ✅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:
PRINCIPALS HAVE DUTIES TO THEIR AGENTS - Correct Answers ✅COMPENSATION
REIMBURSEMENT
INDEMNIFICATION
PERFORMANCE 1 / 3
Law of Agency - Champions Test Questions With Complete Solutions
THE COMMISSION MAY SUSPEND OR REVOKE A LICENSE -
Correct Answers ✅ACTS NEGLIGENTLY OR INCOMPETENTLY
AND FAILS WITHIN A REASONABLE TIME TO PROPERLY
ACCOUNT FOR OR REMIT OF MONEY THAT IS RECEIVED BY
THE LICENSE HOLDER.
Public Responsibility - Correct Answers ✅Honesty Integrity Fairness Disclosure of material facts Accounting of funds held Fiduciary Responsibility - Correct Answers ✅Put the interest of the of the client first Give full disclosure Exhibit trust and honesty Exercise good business judgement Be loyal Be competent Indemnification - Correct Answers ✅MEANS THAT THE
PRINCIPAL WILL PROTECT THE AGENT FROM SUFFERING A
MONETARY LOSS DUE TO THE AGENT'S RELIANCE ON
INFORMATION RECEIVED FROM THE PRINCIPAL. 2 / 3
Law of Agency - Champions Test Questions With Complete Solutions WRITING - Correct Answers ✅THE MOST DESIRABLE
METHOD OF CREATING AN AGENCY RELATIONSHIP WITH A
BUYER, SELLER, LANDLORD, OR TENANT.
Agency of Estoppel - Correct Answers ✅A PRINCIPAL
INADEQUATELY SUPERVISES AN AGENT. THE AGENT TAKES ON
POWERS THAT GO BEYOND THE SCOPE OF AUTHORITY GIVEN
BY THE PRINCIPAL (EXCEEDS AUTHORITY)
EXPRESS AUTHORITY - Correct Answers ✅A WRITTEN
LISTING AGREEMENT OR BUYER REPRESENTATION
AGREEMENT IS EVIDENCE THAT THE AGENCY RELATIONSHIP
EXISTS, AND PROVIDES THE AGENT WITH
Agency Authority - Correct Answers ✅The Agent's authority to act on behalf of someone else, usually an insurer.This authority is derived from the agent's contract with the insurer.IMPLIED AUTHORITY - Correct Answers ✅IS THE NORM OR
WHAT IS CONSIDERED CUSTOMARY IN THE BUSINESS.
FIDUCIARIES - Correct Answers ✅ARE HELD TO THE
HIGHEST AMOUNT OF GOOD FAITH, ARE REQUIRED TO
EXCLUDE SELFISH INTEREST, MAKE FULL DISCLOSURE OF ALL
RELEVANT FACTS.
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