Real Estate License Practice Test (Brokerage Responsibility & Agency Management)

Question 1

What is the legal status of listing brokers' and sellers' agency relationships?

Accepted Answer

Specific agency.

Answer

A limited power of attorney.

Answer

General agency.

Answer

Universal agency.

Question 2

Irene is the owner of a warehouse and has decided to sell it on the open market. Brokers X, Y, and Z have been contacted to sell it on her behalf. Who gets the commission if Broker Y closes the deal?

Accepted Answer

broker Y

Answer

broker Z

Answer

broker X

Answer

all of the above

Question 3

Susan David is putting her two-bedroom, one-bathroom condo on the market. With a local real estate licensee, she signed exclusive right-to-sell listing agreement. Which of the following statements accurately describes the agency relationship that this sort of listing agreement creates?

Accepted Answer

Express agency.

Answer

Universal agency.

Answer

Implied agency.

Answer

General agency.

Question 4

When there is a delegation of authority to perform a single act, a ________ agency is formed.

Accepted Answer

special agent

Answer

ostensible agent

Answer

universal agent

Answer

general agent

Question 5

In an open listing, who takes the biggest risk?

Accepted Answer

the agent

Answer

the owner

Answer

the buyer

Question 6

Except for _____________, all of the following are agency relationships.

Accepted Answer

the real estate salesperson-buyer relationship

Answer

the listing broker-seller relationship

Answer

None of the choices - they all have agency relationships

Answer

the attorney-client relationship

Answer

the real estate broker-buyer relationship

Question 7

Which of the following is a personal property?

Accepted Answer

A deed

Answer

Physical improvements

Answer

Growing trees

Answer

Land

Question 8

A "company dollar" in the context of a real estate brokerage firm is:

Accepted Answer

After paying licensee commissions, the brokerage firm's profit.

Answer

Before paying licensee commissions, the brokerage firm's profit.

Answer

The brokerage associates split the office costs.

Answer

A tax-deferred exchange under Section 1031.

Question 9

A wealthy investor who is legally competent is selling a major commercial property. One of the state's busiest and most profitable brokerage businesses represents the 35-year-old investor. The transaction's closing date falls on an important overseas business trip that the investor cannot postpone or cancel. The investor signs a paper permitting a trusted friend to sign all documents pertaining to the sale of the commercial property before leaving on the business trip. The investor's friend owes fiduciary duties to the investor after accepting the appointment. Which of the following is the name of the document signed by the investor?

Accepted Answer

Power of Attorney

Answer

Purchase and Sale agreement

Answer

Listing agreement

Answer

Conservatorship

Question 10

When a listing agreement is signed, a broker collects a non-refundable fee from the seller to cover the cost of advertising the property for sale. An "advance fee" is a type of fee that is considered trust funds.

Accepted Answer

B) TRUE

Answer

A) FALSE