Real Estate License Agency Relationships

Question 1

What type of legal relationship is established when a real estate licensee represents a buyer or seller in a transaction?

Accepted Answer

Principal-agent relationship

Answer

Arm's length transaction

Answer

Independent contractor arrangement

Answer

Third-party brokerage agreement

Question 2

Which of the following is NOT one of the fiduciary duties an agent owes to their principal?

Accepted Answer

Profitability

Answer

Loyalty

Answer

Disclosure

Answer

Confidentiality

Question 3

A listing agreement between a seller and a real estate broker creates which type of agency?

Accepted Answer

Seller's agency

Answer

Buyer's agency

Answer

Dual agency

Answer

Transaction brokerage

Question 4

Dual agency in real estate occurs when:

Accepted Answer

One broker represents both the buyer and seller in the same transaction

Answer

Two brokerages co-list the same property

Answer

A buyer works with two different buyer's agents simultaneously

Answer

A listing agent splits commission evenly with a buyer's agent

Question 5

An agent's fiduciary duty of loyalty primarily requires the agent to:

Accepted Answer

Place the client's interests above all others, including the agent's own

Answer

Disclose all material property facts to all parties

Answer

Maintain accurate financial records for every transaction

Answer

Follow all lawful instructions from any party in the transaction

Question 6

Express agency in real estate is best described as an agency relationship:

Accepted Answer

Clearly established through a written or oral agreement

Answer

Created through the parties' behavior and conduct alone

Answer

Processed and approved within 24 hours of listing

Answer

Where the principal grants the agent unlimited authority

Question 7

Which document formally establishes a buyer's agency relationship in a real estate transaction?

Accepted Answer

Buyer Representation Agreement

Answer

Purchase and Sale Agreement

Answer

Listing Agreement

Answer

MLS Registration Form