Texas Real Estate Exam Practice

Question 1 of 5

Agency RelationshipsMedium

Which of these can generally end an agency relationship?

AOnly a formal written notice filed with a court

BOnly the passage of exactly one calendar year

CMutual agreement, expiration, or completion of the purpose

DNothing at all — agency relationships never legally come to an end

Explanation

Agency can end through mutual agreement, the agreement's stated expiration, or simply completing its purpose (like closing the sale) — not only through a court filing, not on a fixed one-year timer, and it certainly doesn't last forever.

Question 2 of 5

Agency RelationshipsMedium

Which of these is a recognized fiduciary duty an agent generally owes their principal?

APersonal financial responsibility for the deal's outcome

BLoyalty to the principal's interests above all else

CA guarantee the principal's goals will be met

DA promise the transaction closes by a certain date

Explanation

Loyalty — acting in the principal's best interest rather than the agent's own — is a core fiduciary duty. An agent can't guarantee outcomes like a successful close, isn't personally financially liable for the deal's results, and can't promise a specific closing date, which depends on many parties beyond the agent's control.

Question 3 of 5

Agency RelationshipsMedium

What is the general legal difference between 'puffing' and misrepresentation?

APuffing is illegal in every state, misrepresentation is not

BMisrepresentation only applies to statements made in writing

CPuffing and misrepresentation are simply two different names used for the exact same conduct

DPuffing is opinion-based sales talk; misrepresentation is a false statement of fact

Explanation

Puffing is exaggerated opinion ('this is a fantastic view') that isn't treated as a factual claim, while misrepresentation is a false statement of fact that a buyer could reasonably rely on — the two carry very different legal consequences, puffing generally isn't illegal, and misrepresentation isn't limited to written statements.

Question 4 of 5

Agency RelationshipsMedium

What kind of agent is a real estate agent typically considered, in terms of the scope of authority granted?

AA special agent, limited to a specific transaction

BNot an agent at all under agency law

CA universal agent, authorized to act in all matters

DA general agent, authorized to act broadly for the principal

Explanation

A real estate agent is typically a special agent — authorized for a specific, limited purpose (like selling one property), not broad ongoing authority (a general agent) or unlimited authority across all of a principal's affairs (a universal agent). And a real estate agent clearly does form an agency relationship under the law.

Question 5 of 5

Agency RelationshipsMedium

How is an agency relationship generally created between a principal and an agent?

AAutomatically, the moment an agent shows a property

BOnly when a commission has already been paid

COnly through a court order establishing representation

DBy agreement, express or implied, between the parties

Explanation

Agency is created by agreement — which can be express (written or verbal) or implied by the parties' conduct — not automatically from an act like showing a property, not by a court order, and not retroactively because money changed hands.

Explanation

Explanation

Explanation

Explanation

Explanation

Want unlimited practice?