Law of Agency #1151

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Law of Agency #1151

ARELLO Certified and approved by the Texas Real Estate Commission (TREC) to meet TREC & ARELLO approved TX SAE course online the SAE/CORE requirements for Texas real estate licensees. (learn more)

The practice of real estate is defined by the role the law of agency plays. It is incumbent, therefore, upon the real estate professional and licensee to have a working and practical knowledge of agency laws and how the consumer and professional will interact under those laws during the course of any given real estate transaction.

This course discusses the principal-agent and master-servant relationships, the authority of an agent, the termination of an agent's authority, the fiduciary and other duties of an agent, employment law, deceptive trade practices, listing or buying representation procedures, and the disclosure of agency. Upon completion of the course, students will understand the role agency relationships play in a real estate transaction and be able to properly apply law, rule and policy to their practice.

Table of Contents

          Unit 1: Agency Concepts
          Unit 2: Basic Agency Relationships, Disclosure and Duties to the Client
          Unit 3: Duties and Disclosures to Third Parties
          Unit 4: Seller Agency
          Unit 5: Buyer Agency
          Unit 6: Representing More Than One Party in a Transaction: Intermediary Brokerage
          Unit 7: Creation and Termination of Agency
          Unit 8: Clarifying Agency Relationships
          Unit 9: Employment Issues
          Unit 10: Agency, Ethics and the Law 
          Unit 11: Deceptive Trade Practices and Consumer Protection Act
          Unit 12: Implementation and Presentation

Students can expect numerous exercises, quizzes, case studies and the course will be completed with a cumulative final exam. All elements presented in the course are required for course completion.

Texas Real Estate Commission (TREC) rules govern the delivery of online qualifying education courses (pre-license & SAE) and must be followed by all schools.

All of VanEd’s pre-license and SAE courses have been approved by TREC, and the following sections describe how the TREC rules are implemented.


TREC mandates that you cannot receive credit for working more than 12 hours per day in any course.

This implies that a 30-hour course cannot be completed in less than 3 days from your Start Date (defined as when you first open the course). Furthermore, starting and completing more than one course within the same 3-day period is not allowed. You may work on multiple courses at the same time, however, you may not complete a course within 3 days of the completion date for any other course.

As you move through the VanEd coursework, your time spent online in the courses will be recorded, and we will notify you if additional time in the course is needed to meet the TREC requirements.

As with all VanEd courses, you have a full year from the purchase date in which to complete any course. After one year, your course enrollment will be inactivated. Reactivation for an additional year is available with fee equal to 35% of your purchase price.


Courses are divided into Topics, and TREC rules mandate an exam covering each Topic and that those exams are passed with a 100% score. Topic exams must have a minimum of 3 questions and the questions are drawn randomly from a larger pool. Topic exams may be taken multiple times without penalty.

Every course is culminated with a multiple-choice final exam which has a minimum passing score of 70%.

If you do not pass the final exam, you are required, per TREC rules, to wait 3 days before attempting the exam again, and the second attempt must be within 90 days of the first attempt. If you do not pass the second attempt, or do not complete your second attempt within 90 days, you must repeat the course in full. VanEd DOES NOT charge a fee to repeat the course in either of these circumstances.

Final Exam Proctor

The course final exam is taken online, but in the physical presence of a proctor. The proctoring procedure is simple to follow and allows you to use a wide range of individuals as your proctor. Both students and proctors will submit an affidavit to VanEd when the final is passed, after which your course completion certificates will be provided online.

Detailed proctor information and forms are available inside each course at the time of the Final Exam. Failure to follow the proctoring rules will require you to take the exam again.