Agency and Brokerage carries 11 scored questions, the largest topic on the Texas State Law exam. This free 20-question quiz covers disclosure, intermediary practice, client duties, broker-agent relationships, broker responsibility and unlicensed assistants. Each answer explains the rule and links to its source. Work through realistic scenarios, then choose a lesson or continue practicing in the app.
20 questions on texas agency & intermediary, scored, each with a full explanation after you answer. Every question is also written out below if you would rather study at your own pace.
20 questions
~15 min
Texas State Law practice only
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Work through the questions at your own pace.
Choose an answer mentally, then open its explanation. Each question has a source and a point to watch. These are original practice questions, not Pearson VUE exam items or a prediction of your result.
1
One broker, two clients: establish intermediary authority
A broker agrees to represent both the seller and the buyer in the same transaction. Which requirement must be met for the broker to act as intermediary?
A.Oral consent from both parties, with compensation disclosed at closing
B.Written consent from each party stating the source of expected compensation
C.Written consent from the party paying the broker, with notice to the other
D.Separate IABS acknowledgments from both parties, with no additional consent
Check answer and explanation
Correct answer: B. Written consent from each party stating the source of expected compensation
Section 1101.559(a) requires each party's written consent and identification of the source of any expected broker compensation. Consent is not supplied just by delivering IABS. If the broker represents both sides, Texas requires the intermediary framework rather than ordinary dual agency.
Watch for this: Written consent, source of compensation and impartial conduct are separate requirements. Consent does not authorize the broker to favor either party.
Consent to appointments is not the appointment notice
Both parties have given compliant written intermediary consent authorizing appointments. The broker selects a different associated license holder for each party. What must the broker also provide?
A.A revised IABS signed only by the two appointed license holders
B.An oral introduction to the appointees when negotiations begin
C.A notice to the buyer only because the seller signed the listing
D.Written notice of the appointments to all parties in the transaction
Check answer and explanation
Correct answer: D. Written notice of the appointments to all parties in the transaction
The parties' written consent must authorize appointments, and the broker must give written notice of the appointments to all parties. Those are distinct steps. Each properly appointed license holder may advise the party to whom that person is appointed; the broker remains the intermediary.
Watch for this: An agent cannot appoint themself, and notifying only the appointees does not satisfy notice to all parties.
At an office meeting, an unrepresented buyer and a Texas license holder begin their first substantive discussion about purchasing a particular house. No IABS exception applies. When is IABS due?
A.At this first substantive communication about the specific property
B.When the buyer later signs a written representation agreement
C.When the buyer makes an offer on the house under discussion
D.At the first contact, even if it was only a general introduction
Check answer and explanation
Correct answer: A. At this first substantive communication about the specific property
Section 1101.558(b-1) ties IABS delivery to the first substantive communication about a proposed transaction involving specific property. The question rules out the exceptions in subsection (c). First-contact disclosure of whom an agent represents is a different obligation, and the 2026 showing rules can require IABS before a showing.
Watch for this: Do not turn the ordinary IABS timing rule into an exception-free rule for every conversation.
A Texas sales agent has an issued, active license and is sponsored by an active broker. The agent wants to handle a brokerage transaction independently, outside that sponsorship. Which statement is correct?
A.The issued license permits independent brokerage once the exam is passed
B.Independent-contractor status removes the need to act for the broker
C.The agent must perform brokerage for and under the sponsoring broker
D.The client can replace sponsorship by signing a direct service agreement
Check answer and explanation
Correct answer: C. The agent must perform brokerage for and under the sponsoring broker
An active sales agent license does not authorize independent brokerage. Section 1101.351(c) requires sponsorship and acting for the sponsoring broker. Independent-contractor status concerns the work relationship; it does not turn a sales agent into a broker.
Watch for this: Client permission does not replace the statutory sponsorship requirement.
A non-representation showing agreement has two limits
For a residential buyer in 2026, a license holder proposes a showing-only agreement under Section 1101.562 with no representation. It is exclusive and lasts 30 days. Assuming the other required terms are present, what must change?
A.Keep exclusivity but shorten the term to no more than 14 days
B.Make it non-exclusive and limit the term to no more than 14 days
C.Keep the 30-day term but remove the exclusivity provision
D.Keep both terms if the buyer separately initials those provisions
Check answer and explanation
Correct answer: B. Make it non-exclusive and limit the term to no more than 14 days
Section 1101.563(e) imposes both limits on this non-representation showing agreement. Additional brokerage after the showing requires a separate agreement under subsection (d). A representation agreement that limits services to showings is different; this 14-day limit does not govern every buyer-representation agreement.
Watch for this: The question expressly says no representation. Limited services and no representation are not interchangeable.
In an intermediary transaction, a seller privately says, 'You may tell the buyer I would take $440,000,' below the $460,000 asking price. The seller gives no separate written instruction. What should the intermediary do?
A.Keep that lower price confidential unless separately instructed in writing
B.Tell the buyer because the seller expressly authorized disclosure orally
C.Disclose it once the buyer submits any written offer on the property
D.Disclose it if the seller is the source of the broker's compensation
Check answer and explanation
Correct answer: A. Keep that lower price confidential unless separately instructed in writing
Section 1101.651(d)(1) requires the seller's separate written instruction before the intermediary discloses willingness to accept less than the asking price. Oral permission does not satisfy that requirement. The source of compensation does not change the confidentiality rule.
Watch for this: Do not confuse authority to transmit an actual offer with permission to reveal a party's private price limit.
Permitting work outside the written scope carries responsibility
A broker authorizes a sponsored agent to handle sales only, in writing, but then permits that agent to perform licensed property-management work for a client. Which statement fits TREC Rule 535.2?
A.The broker has no responsibility because management was not in the letter
B.The client assumes the broker's responsibility by accepting the service
C.Responsibility transfers entirely to the agent once work exceeds the letter
D.The broker is responsible for the permitted work beyond the written scope
Check answer and explanation
Correct answer: D. The broker is responsible for the permitted work beyond the written scope
Rule 535.2(a) covers both authorized acts and acts outside the written scope that the broker permits. Subsection (d) also addresses licensed property-management activity by sponsored agents. The rule does not require direct supervision of every act, but that is not permission to abandon the broker's overall responsibilities.
Watch for this: A written scope is a control, not a shield for other brokerage activities the broker permits.
A brokerage's unlicensed clerical assistant has no statutory license exemption. A sales agent asks the assistant to unlock a listed house and let a prospective buyer look inside while the agent stays elsewhere. May the assistant do that?
A.Yes, if the buyer promises not to ask the assistant any questions
B.Yes, if the licensed agent gives written permission for that visit
C.No, providing buyer access is showing and requires a license here
D.No, but only because the assistant would be alone at the property
Check answer and explanation
Correct answer: C. No, providing buyer access is showing and requires a license here
Rule 535.4(c) expressly includes unlocking or providing access for a prospective buyer or tenant in showing property. A clerical job title and an agent's permission do not authorize this assistant to perform a licensed act. The stem excludes statutory exemptions.
Watch for this: The clerical exception is not an open-house or property-access exception.
In 2026, an agent outside the listing brokerage hosts a residential open house and does not represent the owner. A visiting prospective buyer already has a written agreement with another broker. What must this host do before showing the property?
A.Provide IABS and enter the written agreement required by Section 1101.563
B.Rely on the visitor's existing agreement and provide only a business card
C.Require the visitor to terminate the other broker's agreement immediately
D.Give IABS after the tour, then decide whether any agreement is needed
Check answer and explanation
Correct answer: A. Provide IABS and enter the written agreement required by Section 1101.563
TREC's current guidance expressly addresses this situation: the outside host must provide IABS and enter the required written agreement before the showing, even when the visitor already has a buyer-representation agreement elsewhere. The host is not automatically entitled to an exclusive representation relationship.
Watch for this: The open-house exception in the ordinary IABS rule does not erase these separate 2026 duties for the non-owner-representing host.
A license holder represents the seller only. The buyer is unrepresented. Which statement correctly describes the license holder's obligations?
A.The buyer receives the same duty of fidelity as the seller receives
B.The seller's instructions can authorize misleading statements to the buyer
C.The buyer must sign representation before receiving accurate information
D.The buyer is owed honest and fair dealing; fidelity is owed to the seller
Check answer and explanation
Correct answer: D. The buyer is owed honest and fair dealing; fidelity is owed to the seller
Rule 535.156(b) distinguishes dealing honestly and fairly with all parties from fidelity to the principal. The rule also requires accurate information to the public. Known significant defects must be disclosed to a potential buyer under Section 1101.652(b)(3)-(4), whether that buyer is a client or not.
Watch for this: Representing the seller does not authorize misleading the buyer, but it does not make the agent the buyer's advocate either.
A listing-brokerage agent hosts the seller's residential open house in 2026. The conversation concerns only that property, and the agent continues to represent only the seller. What does TREC's guidance require for visitors viewing that open house?
A.IABS and a new buyer-representation agreement for every visitor
B.A showing-only agreement and no disclosure of the seller relationship
C.Disclosure that the agent represents the owner, orally or in writing
D.No relationship disclosure because the open house advertises the seller
Check answer and explanation
Correct answer: C. Disclosure that the agent represents the owner, orally or in writing
For this listing-brokerage scenario, TREC says the host need not provide IABS or enter a written agreement with prospective buyers just to view the open house. The host must still disclose owner representation. If the relationship or services change, reassess the applicable duties rather than extending this exception to unrelated showings.
Watch for this: The host's relationship to the owner changes the answer. Do not apply the outside-host rule to the listing agent.
Confidentiality cannot hide a known significant defect
An intermediary knows of a significant latent foundation defect that would matter to a reasonable buyer. The seller instructs the intermediary in writing not to disclose it. What should the intermediary do?
A.Withhold it because the seller expressly requested confidentiality in writing
B.Disclose the known significant defect despite the seller's instruction
C.Withhold it until the buyer appoints an inspector to discover it independently
D.Disclose it only after the seller signs a second, separate written permission
Check answer and explanation
Correct answer: B. Disclose the known significant defect despite the seller's instruction
Section 1101.651(d)(3) does not protect information that materially relates to the property's condition, or information that TRELA or a court order requires to be disclosed. Section 1101.652(b)(3)-(4) separately addresses known significant defects. The seller's confidentiality instruction does not override that duty.
Watch for this: Do not generalize this to every private fact. Confidential negotiation information and significant property-condition facts receive different treatment.
A broker has compliant consent to act as intermediary but makes no appointments. The buyer asks the broker, 'What price should I offer to beat the seller's bottom line?' Which response is appropriate?
A.Recommend an offer because the buyer is already one of the broker's clients
B.Recommend an offer only if the broker gives the seller comparable advice
C.Recommend an offer after reminding both parties of the intermediary status
D.Explain that the broker cannot give either party negotiation opinions or advice
Check answer and explanation
Correct answer: D. Explain that the broker cannot give either party negotiation opinions or advice
Without appointments, TREC says the intermediary broker and associated agents may not offer transaction opinions or advice to either party or favor one principal. They may still communicate and carry out instructions within their role. When authorized appointments are properly made, the appointees may advise their respective parties.
Watch for this: Intermediary consent is not permission for one person to advise both sides.
Client duties cannot disappear behind a limited-service label
A broker represents a buyer only, not as an intermediary, under a written agreement. The broker calls the service 'limited' and proposes not to answer transaction questions or convey material information. Is that consistent with the minimum duties?
A.No; representation carries minimum duties despite the limited-service label
B.Yes; any client duty can be removed if the agreement calls services limited
C.Yes; only full-service brokers must answer questions and relay information
D.No; the law requires every broker to offer an identical full-service package
Check answer and explanation
Correct answer: A. No; representation carries minimum duties despite the limited-service label
Section 1101.557(b) requires material-information disclosure, answers to the client's questions and presentation of offers. Rules 535.2(b) and 535.156 govern fiduciary obligations. Services can be limited, but the label does not eliminate minimum duties. The stem excludes intermediary because its statutory duties take precedence.
Watch for this: A showing-only agreement without representation is a different arrangement, not an excuse to deny duties to an existing client.
Changing sponsors does not erase earned compensation
An agent earned the right to a commission while sponsored by Broker A, then moved to Broker B. Broker A gives written consent to pay that earned commission to the agent. Which statement is correct?
A.Only Broker B may pay because the agent is no longer sponsored by A
B.The agent must reactivate sponsorship with A before accepting payment
C.Broker A may pay compensation earned during A's sponsorship
D.The agent may now arrange unrelated client payments without broker consent
Check answer and explanation
Correct answer: C. Broker A may pay compensation earned during A's sponsorship
Section 1101.651(b) and Rule 535.3 recognize the broker who sponsored the agent when the compensation was earned. TREC confirms that a former sponsoring broker may pay that compensation. This does not authorize independent side payments for other transactions.
Watch for this: Separate when the right to compensation was earned from when the money is paid.
IABS explains relationships; it does not create one
A license holder gives a prospective buyer the current IABS 1-2 notice. No representation or showing agreement has been entered. What has delivering IABS accomplished?
A.It has created a buyer-client relationship without any further agreement
B.It has explained brokerage roles without creating representation by itself
C.It has authorized intermediary status if the firm later lists the chosen home
D.It has replaced the written agreement needed for residential-buyer brokerage
Check answer and explanation
Correct answer: B. It has explained brokerage roles without creating representation by itself
IABS is an informational notice, not a representation contract, intermediary consent or the written agreement required by Section 1101.563. TREC identifies IABS 1-2 as effective January 1, 2026. Use the current notice and evaluate the separate agreement requirements for the activity being performed.
Watch for this: Acknowledging receipt of a disclosure is not the same as agreeing to representation.
A broker represents a seller under an exclusive listing. The property is not under contract. An offer arrives while the seller is on holiday, and the broker thinks it is far too low. What must the broker do?
A.Present the offer to the seller rather than screening it out
B.Hold the offer until the broker considers its price reasonable
C.Reject it without consulting the seller because the price is low
D.Counter it on the seller's behalf using the broker's preferred price
Check answer and explanation
Correct answer: A. Present the offer to the seller rather than screening it out
Section 1101.557(b) requires the broker to relay material information, including an offer, and present offers to or from the client. The rule's narrow written-instruction exception for later offers after a client enters a contract does not apply here. The property is not under contract.
Watch for this: The broker may explain concerns about the offer, but cannot substitute personal judgment for the seller's decision.
A sales agent terminates the relationship with the sponsoring broker. No new sponsorship is in place. What is the correct next step?
A.Continue existing transactions for 30 days while choosing a new sponsor
B.Wait until renewal to tell TREC because the license has not expired
C.Immediately notify the broker and TREC in writing and stop brokerage
D.Ask existing clients to approve temporary work without a sponsoring broker
Check answer and explanation
Correct answer: C. Immediately notify the broker and TREC in writing and stop brokerage
Section 1101.367(a) requires the terminating party to notify the other party and TREC immediately in writing. TREC places the license on inactive status when it receives the notice. The agent cannot keep doing brokerage without sponsorship while waiting for that processing. Returning to active status requires the applicable sponsorship and activation steps.
Watch for this: Inactive status is not automatic revocation, but there is no client-approved grace period to work unsponsored.
Delegation does not transfer away overall responsibility
A broker delegates compliance supervision in writing to another license holder. A sponsored sales agent violates TRELA in an authorized transaction. Does that delegation remove the sponsoring broker's overall responsibility?
A.Yes; the written delegation substitutes the supervisor for the broker
B.No; overall responsibility remains with the sponsoring broker
C.Yes; if the broker did not personally learn of the agent's conduct
D.No; because Texas prohibits any delegation of supervisory duties
Check answer and explanation
Correct answer: B. No; overall responsibility remains with the sponsoring broker
Rule 535.2(e) permits written delegation but prohibits relinquishing overall responsibility. Section 1101.803 addresses a broker's responsibility for conduct under TRELA by associated or acting sales agents. The agent remains accountable too. This is a rule about brokerage conduct, not every unrelated private act of an agent.
Watch for this: Delegating tasks is allowed. Treating delegation as a complete liability waiver is not.
An advertised fact is not a pricing recommendation
A brokerage employee identifies themself to a caller as an unlicensed clerical assistant. The caller asks for a listing's published bedroom count and then asks what price to offer. Which response stays within the clerical role?
A.Give both answers if the sales agent approved a suggested offer in advance
B.Refuse both questions because all discussion of a listing requires a license
C.Give a price recommendation but refer the bedroom-count question to an agent
D.Confirm the advertised bedroom count and refer offer advice to a license holder
Check answer and explanation
Correct answer: D. Confirm the advertised bedroom count and refer offer advice to a license holder
Rule 535.5(g) permits identified clerical or administrative employees to confirm advertised size, price and terms. It does not authorize them to recommend an offer or negotiate. The assistant should pass that request to the appropriate license holder rather than turn public listing facts into brokerage advice.
Watch for this: The permitted act is confirming advertised information, not advising a prospect simply because a supervisor supplied the words.
A disclosure, a service agreement and permission to act as intermediary do different jobs. Follow each link to the question, explanation and primary source.
IABS is generally due at the first substantive communication about specific property. First-contact disclosure of representation is separate. Check applicable exceptions and pre-showing rules.
The written agreement may establish representation or a limited showing without it. The latter is non-exclusive, lasts no more than 14 days and requires a separate agreement before additional brokerage.
Obtain compliant written intermediary consent from each party, including the source of expected compensation. Delivering IABS alone does not supply consent.
Protect negotiation information under the statutory rules. Do not hide a known significant defect or information that TRELA or a court order requires to be disclosed.
These are study cues, not a substitute for all conditions in the cited provisions. The residential-buyer written-agreement changes and IABS 1-2 took effect January 1, 2026. A showing-only agreement without representation is not the same as a representation agreement with limited services.
Know the scope
How this set fits the Texas State Law outline.
The official topic has 11 scored items. The counts below describe our 20-question sample, not a promise of which questions you will see. Pearson does not publish per-subtopic item counts or a cognitive mix for this State topic.
Texas Agency & Intermediary: official groups and our sample counts
Texas subtopic
Our questions
Disclosure
5
Intermediary Practice
5
Duties to Client (including Minimum Services)
3
Broker-Sales Agent Relationships
3
Broker’s Responsibility for Acts of Sales Agent
2
Appropriate Use of Unlicensed Assistants
2
A sample is not complete coverage of every possible question. See Pearson VUE's Texas Sales Agent outline, section IV. Sources beside each answer explain the underlying principle. Texas-specific rules and examples link to their own authority.
Start with who represents whom. Identify the broker, each client and any unrepresented visitor. Then ask what happens next: a first conversation, a showing, an offer, an appointment or a payment. The same people can trigger different duties at different steps.
These are original practice scenarios with hypothetical facts, not Pearson VUE questions or actual transactions. They cover all six broad Sales Agent agency groups, but not every possible rule or exception. The sample has not been calibrated to the exam, so its score is not a prediction of passing.
Use the Sales Agent outline, not the separate Broker outline in the same PDF. Pearson gives this State topic 11 items without publishing a per-subtopic count or cognitive mix. The written residential-buyer agreement changes and IABS 1-2 took effect January 1, 2026.
Choose what to study next.
Start with the lesson behind a missed question, then try another problem without notes.
How many agency questions are on the Texas sales agent exam?
Agency/Brokerage has 11 scored items on the Texas State Law portion, making it the largest State topic. The Sales Agent outline has six groups, A through F. Pearson does not publish an item allocation within those groups. Our 20 questions are a practice sample, not a forecast of the exact exam mix.
Does Texas allow the same broker to represent both parties?
Yes, through the statutory intermediary framework, not ordinary dual agency. The broker needs each party's written consent identifying the source of expected compensation and must act fairly and impartially. Authorized appointments let different associated license holders advise their respective parties while the broker stays impartial.
Do IABS and a buyer agreement do the same job?
No. IABS explains brokerage roles and duties without creating representation by itself. Section 1101.563 separately requires a written agreement for residential-buyer brokerage before a showing, or before presenting an offer if no property will be shown. The first-contact disclosure of whom an agent represents is another separate duty.
Must every open-house visitor sign a buyer agreement?
No. TREC distinguishes a listing-brokerage host who represents the owner from an outside host who does not. For the listing-brokerage scenario described above, owner-representation disclosure is required, but IABS and a buyer agreement are not required just to view that open house. The outside host must provide IABS and enter the required agreement before showing, even if the visitor already has another broker.
Does every buyer agreement expire after 14 days?
No. The non-exclusive, maximum-14-day rule applies to the non-representation showing agreement under Sections 1101.562 and 1101.563(e). It is not a universal limit on buyer-representation agreements. A separate agreement is required before providing additional brokerage after a non-representation showing.
Can a sales agent arrange compensation independently of a broker?
No. TRELA 1101.651(b)-(c) controls transaction compensation through the sponsoring-broker relationship, including compensation earned under a former sponsor. Rules 535.2(i)(3) and 535.3 address payment by, through, or with the written consent of the broker. Do not confuse an authorized payment arrangement with permission to negotiate independent side payments.
Will this score transfer if I open the web or mobile app?
This website topic-quiz result does not transfer to your account. You can sign in to save practice completed inside the app. Selected activities are free; full access is paid. The 20 questions and explanations here remain available without signup.
Sources and review notes
Reviewed September 7, 2026 for rules effective through September 5, 2026. The source rules were checked against TRELA, current TREC rules, IABS 1-2 and TREC's 2026 buyer-agreement guidance. Pearson VUE provides the Sales Agent topic outline, not these questions. All people, prices and transactions in the scenarios are hypothetical. Statutory limits and effective dates are identified as rules, not invented scenario details. This page is exam preparation, not advice for a transaction.
Use the source beside an answer to check the specific rule.
