TheoryTexas Real Estate 26 Practice Test Video
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Q1In Texas, the term 'client' refers to the party who has what type of relationship with a real estate broker?
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✓ Correct answer: A principal who has signed a written representation agreement
A client in Texas real estate is a principal — a seller, buyer, landlord, or tenant — who has entered into a written representation agreement with the broker, creating fiduciary-level duties.
Q2Under TRELA, who bears ultimate responsibility for the acts and omissions of sponsored sales agents?
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✓ Correct answer: The sponsoring broker
Under the Texas Real Estate License Act (TRELA), the sponsoring broker is legally responsible for all professional acts performed by their sponsored agents.
Q3Which of the following duties is owed to a CLIENT but NOT to a mere customer under Texas law?
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✓ Correct answer: Loyalty (fiduciary duty)
Loyalty is a fiduciary duty owed exclusively to a client. Honesty and disclosure of material defects are owed to everyone, including customers, regardless of representation status.
Q4When a broker represents both the buyer and seller in the same transaction with both parties' written consent, this is called:
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✓ Correct answer: Intermediary brokerage
Texas uses the term 'intermediary' for a broker who, with written consent of both parties, represents both buyer and seller in the same transaction.
Q5An agent who works with a buyer without any written representation agreement owes the buyer which of the following duties?
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✓ Correct answer: Honesty and disclosure of material facts
Without a representation agreement, the buyer is a customer, not a client. The agent still owes honesty and must disclose known material facts, but owes no fiduciary duties such as loyalty or confidentiality.
Q6A Texas broker has a signed listing agreement with Seller A and a buyer representation agreement with Buyer B. Both A and B want the broker to handle the same property. To legally proceed as an intermediary, what is the FIRST required step?
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✓ Correct answer: Obtain written consent from both A and B to act as intermediary
Before acting as an intermediary, the broker must obtain written consent from BOTH clients. Only after that consent is secured can the broker optionally appoint designated agents.
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