Law of Agency (1111) - PDF version


Agency relationships are the foundation of most real estate transactions. The relationship between a licensee and his or her client is considered a fiduciary relationship, meaning that the client places trust in the licensee to fulfill certain duties towards the client. A broker or licensee can act as a seller’s agent, a buyer’s agent, a subagent or an intermediary, and each of these four types of agency relationships has its own set of guidelines, as well its own ethical issues. Licensees who understand both the basics of agency law as well as the specific laws of agency in the state of Texas will be able to serve their clients and customers to the best of their abilities and avoid litigation.

The beginning of this course covers the basics of agency law in general, including the brief history of real estate agency, the definition of agency, the parties involved in the relationship, the types and degrees of authority and the role of agency in real estate. Then, the course covers all relevant sections of the Texas Real Estate License Act and the Rules of the Texas Real Estate Commission. In addition, the student will learn about the creation and termination of agency relationships, the rules for agency disclosure, the duties required of agents, the agent’s liability, the Texas Deceptive Trade Practices Act, and the different types of agency agreements. The last two lessons in the course discuss the rules about commissions, antitrust laws and employment law in Texas.

As the student completes this module, he or she should attempt to fit the information in with the big picture of the real estate profession. The conclusion of the module will assist in drawing the information together by presenting real world practice, comprehension questions and case studies for the student’s consideration.


Upon completion of this module, the student will be able to:

  • Have learned about the history of real estate and the role of agency in the real estate profession.
  • Understand the role of the agent, the principal and the third party in the agency relationship.
  • Know the different types of authority.
  • Know the differences between the universal, general and the special agent.
  • Have read the relevant sections of the Texas Real Estate License Act and the Rules of the Texas Real Estate Commission.
  • Understand the rules for disclosure of agency relationships and agency law.
  • Know the duties that an agent owes the principal and the third party.
  • Understand tort liability.
  • Know the circumstances under which a licensee may be held liable.
  • Understand how the licensee’s duties apply to the four different agency positions.
  • Be able to compare and contrast the different forms of listing agreements.
  • Understand buyer representation agreements.
  • Be familiar with the specific issues of an intermediary relationship.
  • Know how agency relationships are created and terminated.
  • Be able to list the guidelines for compensation eligibility.
  • Understand the concept of the procuring cause.
  • Know the impact gratuitous agency upon agency relationships.
  • Understand how antitrust laws affect compensation and commissions.
  • List the differences between employees and independent contractors.
  • Know the anti-discrimination laws.
  • Know what tasks unlicensed assistant can perform.

Regulatory Requirement

Our staff works diligently to provide you with an analysis of current mandates and legislation that affects you the licensee. All information pertaining to the Mandatory Continuing Education requirements can be found on the State Requirements page. You can find the link to this page on the upper Navigation bar on the Course Catalog.

Course Completion

Any applicable completion certificates or affidavits can be printed after completing the course and final exam.


Quizzes - There is a quiz at the end of each lesson to test comprehension of the subject matter.

Final Exam - Passing Grade 70%. You can take the final three times.

About The Subject Matter Expert

This course is created and brought to you by 360Training, a leading provider of accredited e-learning courses to working professionals through today's leading schools, associations and corporations. 360Training's high quality e-learning courses assist thousands of working professionals each month in a wide range of disciplines to succeed in today's marketplace, renew licenses, acquire certification or prepare for a new profession.


If you have any requests for technical support please contact the 360Training Support Department located in the HELP section of your account profile. Technical support inquiries are handled immediately.