Real Estate Sales Exam Real Estate Sales Agency and Fiduciary Duties Questions and Answers 3 — Questions and Answers
Question 1: A seller's agent receives a verbal offer from a buyer but considers it too low. What should the agent do?
- Reject the offer on the seller's behalf
- Advise the buyer to increase the offer before presenting it
- Present the offer to the seller promptly (Correct answer)
- Hold the offer until a better one comes in
Correct answer: Present the offer to the seller promptly
Agents must present all offers to their clients promptly, regardless of the agent's personal assessment of the offer's adequacy.
Question 2: Which of the following BEST describes the duty of loyalty in a real estate agency relationship?
- Always putting the client's interests above the agent's own interests (Correct answer)
- Keeping the client's financial information private
- Following state disclosure requirements
- Providing accurate market analysis reports
Correct answer: Always putting the client's interests above the agent's own interests
The duty of loyalty requires agents to place their client's interests above their own and above the interests of all other parties.
Question 3: An agency relationship can be terminated by all of the following EXCEPT:
- Mutual agreement of the parties
- Expiration of the agency agreement term
- The agent deciding unilaterally without cause to stop working (Correct answer)
- Completion of the transaction purpose
Correct answer: The agent deciding unilaterally without cause to stop working
An agent cannot unilaterally abandon a client without cause; doing so would breach the agency agreement and fiduciary duties.
Question 4: A real estate agent accidentally deposits a client's earnest money into the agent's personal bank account. Which fiduciary duty has been violated?
- Confidentiality
- Obedience
- Accounting (Correct answer)
- Disclosure
Correct answer: Accounting
The duty of accounting requires agents to properly handle and safeguard all funds and property entrusted to them by clients or third parties.
Question 5: Under what circumstance may a real estate agent disclose confidential client information?
- When another agent in the office requests it
- When the information would help close the deal faster
- When required by law or court order (Correct answer)
- When the opposing party's agent offers reciprocal information
Correct answer: When required by law or court order
Confidential client information may only be disclosed when legally compelled, such as by court order or statutory requirement.
Question 6: A property manager who collects rent on behalf of an owner is acting as what type of agent?
- Universal agent
- General agent (Correct answer)
- Special agent
- Subagent
Correct answer: General agent
A general agent is authorized to handle a range of ongoing matters for the principal, such as a property manager conducting day-to-day operations.
Real Estate Sales Exam Real Estate Sales Agency and Fiduciary Duties Questions and Answers 3
A seller's agent receives a verbal offer from a buyer but considers it too low.
What should the agent do?