WorksheetsLaw of Agency Level 1-4 Quiz
Total questions: 30
Worksheet time: 16mins
Actions an agent has been authorized to complete on behalf of a principal
Agency by actual authority
Agency by estoppel
Agency by ratification
Express Agency
Agency that is imposed by law when it is determined that ostensible agency existed
Agency by actual authority
Agency by estoppel
Agency by ratification
Express Agency
An unauthorized action taken on behalf of a principal which is accepted and legitimized after the fact by the principal
Ostensible Agency
Agency by estoppel
Agency by ratification
Express Agency
Authority derived from an agency relationship that is created either orally or in writing
Ostensible Agency
Agency by estoppel
Agency by ratification
Express Agency
Occurs when a principal allows a license holder to act in such a way at to cause a third party to believe that license holder is the principals agent
Ostensible Agency
Agency by estoppel
Agency by ratification
Express Agency
Manage all the principals affairs within certain specified areas
General Agency
Special Agency
Universal Agency
Implied Agency
Agent represents one party in a real estate transaction and the party may be either a seller or a buyer
General Agency
Special Agency
Universal Agency
Implied Agency
The client of a broker in an agency relationship
Principal
Customer
Clint Eastwood
Third Party
an individual with whom a license holder has no agency relationship with, but still owes them honesty and fairness
Principal
Customer
Turkey
Third Party
any person involved in a real estate transaction who is not your client and is not a client to any party in the transaction. (Escrow Officer, Lender, Appraiser, etc.)
Principal
Customer
Gobble
Third Party
The most broad type of agency
General Agency
Agency by estoppel
Universal Agency
Express Agency
Your company is listing the property you are showing. Should you make an oral or written agreement with the buyer?
You should make an oral agreement.
You should make a written agreement.
Kristy is trying to purchase a home. Logan, a broker, is representing her. They have signed a:
buyer/tenant representation agreement
listing agreement
Primarily, who does TREC assist and protect?
consumers of real estate services
sponsoring brokers
real estate developers
sales agents
Sarah is Audrey's client. Sarah calls Audrey and tells her that she can show her home next weekend to an interested potential buyer. What is this an example of?
estoppel authority
ostensible authority
implied authority
express authority
TREC regulates all of the following EXCEPT:
attorneys
education providers for real estate and inspection courses
residential service companies
real estate brokers and sales agents
To whom do sales agents owe the OLD CAR fiduciary duties?
clients
customers
sellers
brokers
Whose interest must a listing agent put first?
their client's
their broker's
their own
the buyer's
Frank is a broker. What duties does he owe to a home inspector who is inspecting a house on behalf of his client?
honesty, fairness, and full disclosure of the condition of the property
accounting, obedience, and full disclosure of the condition of the property
confidentiality, fairness, and honesty
obedience, loyalty, and reasonable care
Why do you need to study agency?
It is rare that you will need to use knowledge about agency, but it's best to be prepared for these uncommon situations.
Agency is part of daily life as a real estate agent. You need to know about agency for the licensing exam, to work with clients and brokers, and more.
Alexis, a sales agent, is advising her client on how to fill out the Seller's Disclosure Notice. The client does not want to disclose that the house has water damage. What should Alexis do?
Alexis should remind the client that they must fill out the form honestly. If the client won't change their mind, she should sever the relationship.
Alexis should allow the client to not disclose this information.
Who can a sales agent accept compensation or a commission from?
their supervising broker only
anyone with whom they have an OLDCAR relationship
their supervising broker and buyers only
In a general agency relationship between a broker and a sales agent, who is responsible for the sales agent's behavior?
the broker
the sales agent
TREC
The duty of honesty and fair dealing would require which of the following actions from a broker or sales agent?
conveying accurate information about material facts to all parties
disclosing the principal’s confidential information to a third party
acting in the best interests of all parties
Under which type of listing would the agent be compensated regardless of who sells the property?
exclusive right-to-sell listing
open listing
exclusive agency listing
net listing
Alan is a sales agent. He has a general agency relationship with his supervising broker, Barbara. His client, Cara, is the seller. Darius is an interested buyer that Alan is giving a home tour to. To which of these people does Alan owe the duties of OLD CAR?
Cara
Barbara
Darius
Recently, Broker Elizabeth and client Lucky terminated their agency relationship. What duties does Elizabeth still owe Lucky after termination?
confidentiality and accounting
obedience and reliability
disclosure and reasonable care
Who enforces TRELA, including by disciplining salespersons and brokers?
TREC
HUD
CFPB
Reorder the following: Agents owe fiduciary duties to their clients. What are those duties in the order?
____ ending with reasonable care
obedience
loyalty
disclosure
confidentiality
accounting
Which of the following statements is TRUE?
Brokers are responsible for everything their sponsored agents do regarding real estate.
Brokers do not have any liability for their sponsored agents.
Most brokers allow their agents to make their own decisions on their competencies and scope of authority.
