NAR Agency Relationships & Fiduciary Duties

Question 1

Which fiduciary duty requires a real estate agent to place the client's interests above their own at all times?

Accepted Answer

Loyalty

Answer

Obedience

Answer

Disclosure

Answer

Confidentiality

Question 2

A listing agreement between a seller and a broker establishes which type of agency relationship?

Accepted Answer

Seller agency (listing agency)

Answer

Buyer agency

Answer

Dual agency

Answer

Transactional brokerage

Question 3

The fiduciary duty of 'accounting' in real estate requires an agent to:

Accepted Answer

Safeguard and report on all funds and property entrusted to them

Answer

Prepare tax returns for the client

Answer

Audit the seller's financial statements

Answer

Calculate capital gains for property sales

Question 4

What must an agent disclose to a client under the fiduciary duty of disclosure?

Accepted Answer

All material facts and relevant information that could affect the client's decisions

Answer

Only information that benefits the client financially

Answer

Information about the agent's personal investment portfolio

Answer

Only information required by state law

Question 5

In a dual agency arrangement, the agent represents:

Accepted Answer

Both the buyer and the seller in the same transaction

Answer

Two buyers competing for the same property

Answer

Two sellers listing similar properties

Answer

A buyer and a lender simultaneously

Question 6

Which of the following is TRUE about undisclosed dual agency?

Accepted Answer

It is illegal and a breach of fiduciary duty

Answer

It is permitted if both parties are sophisticated buyers and sellers

Answer

It is a common and accepted practice in commercial real estate

Answer

It is allowed if the commission is split equally

Question 7

A subagent in real estate owes fiduciary duties to:

Accepted Answer

The listing broker's principal (the seller)

Answer

The buyer they are working with directly

Answer

Both the buyer and seller equally

Answer

The MLS that listed the property