Real Estate Sales Exam FREE Real Estate Sales Agency Law and Fiduciary Duties Questions and Answers 2

Question 1

A buyer's agent learns that the buyer plans to offer $350,000 for a property but would pay up to $400,000. What is the agent's fiduciary obligation regarding this information?

Accepted Answer

Keep it confidential and not reveal it to the seller

Answer

Disclose it to the seller to facilitate the deal

Answer

Share it with the listing agent as a professional courtesy

Answer

Report it to the state real estate commission

Question 2

Which type of agency relationship is created when a real estate agent represents both the buyer and the seller in the same transaction?

Accepted Answer

Dual agency

Answer

Universal agency

Answer

Single agency

Answer

Designated agency

Question 3

An agent who owes a fiduciary duty of obedience must do which of the following?

Accepted Answer

Follow all lawful instructions from the client

Answer

Follow all client instructions regardless of legality

Answer

Obey only written instructions from the client

Answer

Follow instructions from both the client and cooperating agents

Question 4

A listing agent discovers that the property has a cracked foundation that the seller has not disclosed. What must the agent do?

Accepted Answer

Disclose the defect to prospective buyers

Answer

Keep the information confidential as part of the duty of loyalty

Answer

Wait until a buyer asks about structural issues before disclosing

Answer

Only disclose the defect if required by the buyer's agent

Question 5

In a designated agency arrangement, which statement is TRUE?

Accepted Answer

The broker acts as a dual agent while individual agents represent separate clients

Answer

Neither the buyer nor seller has representation

Answer

Both designated agents share all client information with each other

Answer

The broker has no supervisory responsibility over either agent

Question 6

Which fiduciary duty requires an agent to place the client's interests above the interests of all other parties, including the agent's own interests?

Accepted Answer

Duty of loyalty

Answer

Duty of disclosure

Answer

Duty of accounting

Answer

Duty of reasonable care

A buyer's agent learns that the buyer plans to offer $350,000 for a property but would pay up to $400,000.What is the agent's fiduciary obligation regarding this information?

A buyer's agent learns that the buyer plans to offer $350,000 for a property but would pay up to $400,000.
What is the agent's fiduciary obligation regarding this information?