Real Estate Sales Exam Agency and Fiduciary Duties 3

Question 1

A transaction broker differs from a single agent because a transaction broker:

Accepted Answer

Provides limited representation without full fiduciary duties to either party

Answer

A transaction broker facilitates the sale without representing either party as a fiduciary, providing limited representation and focusing on completing the transaction.

Question 2

A seller lists a home with an agent. A few weeks later, the agent wants to purchase the property personally. The agent should:

Accepted Answer

Disclose the agency relationship and obtain the seller's informed written consent

Answer

An agent who wants to purchase a listed property must fully disclose their agency status to the seller and receive written consent to avoid a breach of fiduciary duty.

Question 3

What is 'informed consent' in the context of dual agency?

Accepted Answer

The client's agreement to dual agency after being fully informed of the limitations

Answer

Informed consent means the client understands and agrees to dual agency after being told how it limits the agent's ability to advocate fully for them.

Question 4

An agent who fails to present all offers to a seller, even low ones, is violating which duty?

Accepted Answer

Loyalty and disclosure

Answer

Failing to present all offers breaches both loyalty (acting in the seller's best interest) and disclosure (informing the seller of all relevant information).

Question 5

Which statement best describes a 'designated agency'?

Accepted Answer

Different agents within the same brokerage are designated to represent buyer and seller separately

Answer

In designated agency, the broker assigns different agents within the firm to represent the buyer and seller, reducing the conflict inherent in dual agency.

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Agency and Fiduciary Duties 3