Real Estate License Agency Relationships 2

Question 1

What is the primary distinction between a special agent and a general agent in real estate?

Accepted Answer

Special agents are authorized for one specific act; general agents have broader ongoing authority

Answer

A special agent is authorized only to perform a specific act such as selling one property, while a general agent has broader, continuing authority to act for the principal.

Question 2

Implied agency is created when:

Accepted Answer

An agency relationship is established through the parties' words, conduct, or actions

Answer

Implied agency arises from the behavior and actions of the parties rather than a formal written or oral agreement, and can unintentionally create fiduciary obligations.

Question 3

A listing agent discovers a serious structural defect in the property they represent. What is the agent's primary obligation?

Accepted Answer

Disclose it to potential buyers as a material fact

Answer

Agents must disclose all known material facts to potential buyers; concealing a structural defect violates the duty of disclosure and can expose the agent to legal liability.

Question 4

A Transaction Broker (also called a Facilitator or Non-Agent) is a licensee who:

Accepted Answer

Assists both parties in a transaction without serving as a fiduciary for either

Answer

A transaction broker provides limited assistance to both parties without owing full fiduciary duties to either the buyer or seller.

Question 5

The agent's fiduciary duty of accounting requires the agent to:

Accepted Answer

Properly account for all funds received or held on behalf of the client

Answer

The duty of accounting obligates the agent to accurately manage all client funds, such as earnest money deposits, preventing commingling or misappropriation.

Real Estate License Practice Test

Real Estate License Practice Test

Real Estate License Agency Relationships 2