Real Estate Sales Exam Agency and Fiduciary Duties 5

Question 1

A listing agent who also brings in the buyer and represents both parties in the same transaction without disclosure is guilty of:

Accepted Answer

Undisclosed dual agency, which is illegal

Answer

Representing both buyer and seller without disclosure and consent is undisclosed dual agency, which is illegal in all states and can result in license revocation.

Question 2

When a client relationship ends, an agent's obligation to protect the client's confidential information is:

Accepted Answer

Maintained indefinitely even after the relationship ends

Answer

The duty of confidentiality survives the end of the agency relationship, meaning former clients' personal and motivational information must remain protected indefinitely.

Question 3

A non-exclusive buyer-broker agreement allows a buyer to:

Accepted Answer

Work with multiple brokers simultaneously during the agreement term

Answer

A non-exclusive buyer-broker agreement permits the buyer to work with multiple brokers, with commission typically owed only to whichever broker procures the purchased property.

Question 4

A real estate agent who secretly earns a referral fee from a home inspector without telling the buyer client is violating which duty?

Accepted Answer

Loyalty and disclosure

Answer

Accepting an undisclosed referral fee creates a conflict of interest that violates the agent's duties of loyalty (putting their own gain first) and disclosure (hiding the financial relationship).

Question 5

Which document is used in most states to notify consumers about the types of agency relationships available before they enter into one?

Accepted Answer

The agency disclosure form

Answer

Most states require agents to provide an agency disclosure form early in the relationship, explaining buyer agency, seller agency, dual agency, and other options.

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Agency and Fiduciary Duties 5