PSI PSI Real Estate Agency and Property Management 1

Question 1

Which type of agency relationship is created when a seller hires a broker to sell their property?

Accepted Answer

Listing agency

Answer

A listing agency relationship is formed when a property owner (principal) authorizes a broker (agent) to act on their behalf to sell the property.

Question 2

What fiduciary duty requires an agent to place the client's interests above all others, including the agent's own?

Accepted Answer

Loyalty

Answer

The duty of loyalty requires the agent to act solely in the best interest of the principal and to avoid any conflicts of interest.

Question 3

A broker who represents both the buyer and the seller in the same transaction with informed consent is acting as a:

Accepted Answer

Dual agent

Answer

A dual agent represents both the buyer and seller in a single transaction, which is only permissible with the informed written consent of both parties.

Question 4

An agent's authority that is expressly granted in writing through a listing agreement is called:

Accepted Answer

Express authority

Answer

Express authority is explicitly stated in a written or oral agreement, such as a listing contract that authorizes the agent to market and negotiate the sale of property.

Question 5

Which listing agreement gives the broker the exclusive right to a commission regardless of who sells the property?

Accepted Answer

Exclusive right-to-sell listing

Answer

An exclusive right-to-sell listing entitles the broker to a commission if the property sells during the listing period, no matter who procures the buyer.

PSI - Exams Practice Test

PSI - Exams Practice Test

PSI PSI Real Estate Agency and Property Management 1