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

The duty of loyalty obligates an agent to prioritize the client's best interests over their own or any third party's interests throughout the relationship.

Question 2

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

Accepted Answer

Seller agency (listing agency)

Answer

A listing agreement creates a seller agency relationship, making the broker the seller's agent and obligating the broker to represent the seller's interests.

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

Accounting requires agents to keep accurate records of and properly handle all money, documents, and property received on behalf of the client.

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

The duty of disclosure requires agents to proactively share all known material facts and relevant information that could influence the client's decisions, even if not asked.

Question 5

In a dual agency arrangement, the agent represents:

Accepted Answer

Both the buyer and the seller in the same transaction

Answer

Dual agency occurs when the same agent or brokerage represents both the buyer and the seller in the same real estate transaction.

(NAR) National Association of Realtors Certification Practice Test

(NAR) National Association of Realtors Certification Practice Test

NAR Agency Relationships & Fiduciary Duties