Real Estate Sales Exam Agency Law and Fiduciary Duties 5

Question 1

A real estate agent who represents a landlord and helps rent a property owes fiduciary duties to:

Accepted Answer

The landlord, as the principal

Answer

When hired by a landlord, the agent represents the landlord's interests and owes fiduciary duties exclusively to the landlord.

Question 2

Agency coupled with an interest means the agent:

Accepted Answer

Has a personal financial interest in the subject matter of the agency

Answer

Agency coupled with an interest exists when the agent has a personal stake in the property or transaction, making the agency irrevocable by the principal.

Question 3

Which statement about material facts is CORRECT?

Accepted Answer

Any fact that would affect a reasonable person's decision to buy is material

Answer

A material fact is any information that could reasonably affect a buyer's decision to purchase or the price they would pay, including physical, legal, and environmental conditions.

Question 4

When a listing agreement is signed, agency is created between the:

Accepted Answer

Broker and seller

Answer

A listing agreement is a contract between the seller and the broker (not the individual salesperson), establishing the agency relationship.

Question 5

A dual agent's duty of loyalty to each party is:

Accepted Answer

Reduced because they represent both parties simultaneously

Answer

In disclosed dual agency, the agent cannot advocate fully for either party's interests, so loyalty duties are necessarily limited for both clients.

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Agency Law and Fiduciary Duties 5