Texas Agency
Practice Questions & Answers (2026)
Agency law is one of the most tested subjects on the Texas real estate exam, and it's also one of the most misunderstood. The Texas Real Estate Commission (TREC) expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under Texas law. As a community property state, Texas also tests how agency relationships are affected when spouses are both parties to a transaction. Study these questions carefully — candidates who rely on national agency frameworks and don't account for TX-specific rules are among the most common failures on the state portion.
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Texas Agency — Practice Questions & Answers
120 questions on Agency from the Texas real estate question bank. First 10 are free — sign up to unlock all 120.
Q1. In Texas, an 'intermediary' broker is one who:
Explanation
Texas law allows a broker to act as an intermediary—representing both buyer and seller in the same transaction—with the written consent of both parties. This is similar to dual agency in other states.
Q2. When a Texas broker acts as an intermediary, they are generally prohibited from:
Explanation
An intermediary must treat both parties fairly and is prohibited from disclosing confidential information that could harm one party, such as advising a buyer to offer less or telling a seller the buyer will pay more than offered.
Q3. The IABS form in Texas must be provided:
Explanation
Texas requires the IABS (Information About Brokerage Services) form to be provided at the first substantive dialogue regarding specific real property. It can be provided in person, by mail, or electronically.
Q4. Under Texas law, a sales agent who acts WITHOUT a written buyer representation agreement is presumed to represent:
Explanation
Without a written buyer representation agreement, a sales agent working with a buyer is presumed to represent the seller through the listing broker relationship (subagency). This is why obtaining written buyer representation agreements is important.
Q5. A Texas licensee's fiduciary duties to their client include all of the following EXCEPT:
Explanation
A licensee cannot guarantee a successful transaction outcome. The fiduciary duties owed to a client are: loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care (often remembered asOLDCAR or CLADON).
Q6. Which of the following must a Texas seller's agent disclose to a buyer regarding the property?
Explanation
While a seller's agent owes primary duties to the seller, they must still disclose known material facts (defects) to buyers that would reasonably affect their decision to purchase. Concealing material defects constitutes fraud.
Q7. In Texas, the relationship between a real estate broker and their client is governed by the concept of:
Explanation
Texas law establishes fiduciary duties between a broker and their client. The Texas Occupations Code Chapter 1101 and TREC rules define the scope of these duties including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.
Q8. Under Texas law, the Information About Brokerage Services (IABS) notice must be provided:
Explanation
TREC rules require that a licensee provide the IABS notice to a prospective client at the first substantive dialogue, which is the first meeting or communication that involves specific property or client needs.
Q9. A Texas broker who represents both the buyer and seller in the same transaction with written consent from both parties is acting as a(n):
Explanation
In Texas, when a broker represents both parties with written consent, they are called an intermediary. Texas law uses 'intermediary' rather than 'dual agent' terminology.
Q10. When a Texas broker acts as an intermediary, they may NOT:
Explanation
An intermediary in Texas is prohibited from disclosing information about what price or terms one party will accept without that party's consent, disclosing personal motivations, or disclosing confidential information.
Q11. A Texas buyer's representation agreement is BEST described as:
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