Free 5-question sample test with instant feedback. See how ready you are.
Question 1
What type of agency relationship exists when a broker represents BOTH the buyer and seller in the same transaction?
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'?
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?
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?
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?
Answer: Universal agency. This type is rarely used in real estate and is typically established through a general power of attorney.