Real Estate Sales Exam Real Estate Sales Agency and Fiduciary Duties Questions and Answers 2

Question 1

A buyer's agent learns that the seller is willing to accept a lower price than listed. What is the agent's fiduciary obligation?

Accepted Answer

Keep this information confidential

Answer

A buyer's agent owes confidentiality to their client and must not disclose the seller's motivation or willingness to accept less without authorization.

Question 2

Which type of agency relationship is created when a broker represents both the buyer and the seller in the same transaction?

Accepted Answer

Dual agency

Answer

Dual agency occurs when one broker or firm represents both parties in a transaction, requiring informed written consent from both sides.

Question 3

An agent who fails to present all offers to a seller has violated which fiduciary duty?

Accepted Answer

Disclosure

Answer

The duty of disclosure requires agents to present all material facts and offers to their clients, regardless of the agent's opinion of the offer.

Question 4

A listing agent discovers that the property has a hidden foundation crack during an open house. What must the agent do?

Accepted Answer

Disclose the defect to all prospective buyers

Answer

Material defects that affect property value or safety must be disclosed to all prospective buyers regardless of the seller's wishes.

Question 5

In a designated agency arrangement, which statement is TRUE?

Accepted Answer

Each designated agent represents only their assigned client's interests

Answer

In designated agency, the broker assigns individual agents to represent each party separately, and each agent advocates solely for their assigned client.

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Real Estate Sales Agency and Fiduciary Duties Questions and Answers 2