NAR Client Relationship & Account Management 2

Question 1

A buyer client asks you to show them a property that is listed by your own brokerage. What type of relationship exists?

Accepted Answer

Dual agency

Answer

When a brokerage represents both the buyer and seller in the same transaction, a dual agency relationship exists.

Question 2

Which of the following best describes the concept of 'undivided loyalty' in an agency relationship?

Accepted Answer

Acting solely in the client's best interest without conflicting obligations

Answer

Undivided loyalty means the agent places the client's interests above all others, including their own.

Question 3

A seller tells their listing agent a fact about the property that could lower its value. What should the agent do?

Accepted Answer

Disclose it to all potential buyers as a material fact

Answer

Agents have a duty to disclose material facts that could affect a buyer's decision, regardless of the seller's wishes.

Question 4

How long should a real estate agent typically retain client transaction records?

Accepted Answer

The retention period varies by state law, often 3–7 years

Answer

Record retention requirements vary by state but typically range from 3 to 7 years after transaction closing.

Question 5

A client signs a buyer representation agreement. What does this contract primarily establish?

Accepted Answer

The agent's fiduciary duties and the client's obligation to work exclusively with that agent

Answer

A buyer representation agreement formalizes the agency relationship, defining duties owed and often creating an exclusivity arrangement.

(NAR) National Association of Realtors Certification Practice Test