Real Estate Sales Exam Agency Law and Fiduciary Duties 2

Question 1

A buyer's agent who also represents the seller in the same transaction without both parties' written consent is guilty of:

Accepted Answer

Undisclosed dual agency

Answer

Undisclosed dual agency is illegal because it violates the agent's fiduciary duty of loyalty to both clients without their knowledge.

Question 2

Which fiduciary duty requires an agent to place the client's interests above their own personal gain?

Accepted Answer

Loyalty

Answer

Loyalty requires the agent to prioritize the client's interests over all others, including the agent's own financial benefit.

Question 3

When a seller's agent learns that the seller is going through a divorce and must sell quickly, this information is:

Accepted Answer

Confidential and must not be disclosed without seller's permission

Answer

The seller's personal motivation to sell quickly is confidential information that the agent must protect under the duty of confidentiality.

Question 4

A real estate agent who represents the buyer is called a:

Accepted Answer

Buyer's agent

Answer

A buyer's agent exclusively represents the buyer's interests and owes fiduciary duties to the buyer.

Question 5

Under the duty of accounting, a real estate agent must:

Accepted Answer

Keep accurate records of all client funds and property

Answer

The duty of accounting requires agents to safeguard and properly account for all money and property entrusted to them by clients.

Real Estate Sales Exam Practice Test