Agency Relationships Flashcards
7 cards from real Real Estate License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Agency Relationships flashcards as text
What type of legal relationship is established when a real estate licensee represents a buyer or seller in a transaction?
Answer: Principal-agent relationship
An agency relationship in real estate is a principal-agent relationship where the licensee (agent) owes fiduciary duties to the client (principal).
Which of the following is NOT one of the fiduciary duties an agent owes to their principal?
Answer: Profitability
Fiduciary duties include loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care — profitability is not among them.
A listing agreement between a seller and a real estate broker creates which type of agency?
Answer: Seller's agency
A listing agreement establishes a seller's agency, meaning the broker is engaged to represent the seller's interests throughout the transaction.
Dual agency in real estate occurs when:
Answer: One broker represents both the buyer and seller in the same transaction
Dual agency arises when a single broker or brokerage represents both the buyer and seller in one transaction, requiring full disclosure and consent from both parties.
An agent's fiduciary duty of loyalty primarily requires the agent to:
Answer: Place the client's interests above all others, including the agent's own
The duty of loyalty obligates the agent to act exclusively in the client's best interest, even when doing so conflicts with the agent's own financial gain.
Express agency in real estate is best described as an agency relationship:
Answer: Clearly established through a written or oral agreement
Express agency is explicitly created by a written or oral agreement between principal and agent, distinguishing it from implied agency which arises from conduct.
Which document formally establishes a buyer's agency relationship in a real estate transaction?
Answer: Buyer Representation Agreement
A Buyer Representation Agreement (also called a Buyer Agency Agreement) is the contract that formally creates the agency relationship between a buyer and their agent.