Real Estate Sales Exam Real Estate Sales Agency and Fiduciary Duties Questions and Answers 3

Question 1

A seller's agent receives a verbal offer from a buyer but considers it too low. What should the agent do?

Accepted Answer

Present the offer to the seller promptly

Answer

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?

Accepted Answer

Always putting the client's interests above the agent's own interests

Answer

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:

Accepted Answer

The agent deciding unilaterally without cause to stop working

Answer

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?

Accepted Answer

Accounting

Answer

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?

Accepted Answer

When required by law or court order

Answer

Confidential client information may only be disclosed when legally compelled, such as by court order or statutory requirement.

Real Estate Sales Exam Practice Test