Question 1

What type of agency relationship exists when a broker represents BOTH the buyer and seller in the same transaction?

Accepted Answer

Intermediary agency. In Texas, this is the term used instead of 'dual agency,' and it requires written consent from both parties.

Question 2

In Texas, what is a 'designated agent'?

Accepted Answer

A license holder appointed by an intermediary broker to represent one party exclusively within the same transaction, allowing each party to receive full representation.

Question 3

What type of agency is created when a seller lists a property and authorizes the broker to find a buyer?

Accepted Answer

Special agency (also called specific agency). The broker is authorized to perform a specific act — finding a buyer — but cannot bind the principal to a contract.

Question 4

What is a 'subagent' in a real estate transaction?

Accepted Answer

A license holder who works for the listing broker and owes fiduciary duties to the seller, even while working with the buyer.

Question 5

Which type of agency grants the broadest authority, allowing an agent to act on behalf of the principal in ALL matters?

Accepted Answer

Universal agency. This type is rarely used in real estate and is typically established through a general power of attorney.

Agency Relationships – Texas Real Estate Salesperson Exam

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