RES Agency Law & Ethics

Question 1

What fiduciary duties does a real estate agent owe their client?

Accepted Answer

Obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care

Answer

Only to find the cheapest property

Answer

To represent both buyer and seller equally at all times

Answer

To maximize the agent's commission

Question 2

What is the difference between a buyer's agent and a seller's agent?

Accepted Answer

A buyer's agent represents the buyer's interests; a seller's agent (listing agent) represents the seller's interests

Answer

They perform the same duties for different fees

Answer

A buyer's agent always charges more

Answer

There is no legal distinction

Question 3

What must a real estate agent disclose to potential buyers about a property?

Accepted Answer

All known material facts that could affect the property's value or desirability

Answer

Only defects visible during a showing

Answer

Nothing if the seller instructs them not to

Answer

Only issues discovered during a professional inspection

Question 4

What is the Fair Housing Act and what does it prohibit?

Accepted Answer

A federal law prohibiting discrimination in housing based on race, color, religion, sex, national origin, disability, and familial status

Answer

A law requiring all housing to be the same price

Answer

A regulation about building accessibility only

Answer

A local ordinance about property maintenance

Question 5

What is steering in real estate?

Accepted Answer

The illegal practice of directing buyers toward or away from neighborhoods based on protected class characteristics

Answer

Advising clients on the best direction to face their home

Answer

Guiding buyers to properties within their budget

Answer

Showing properties in alphabetical order

Question 6

What is a listing agreement?

Accepted Answer

A contract between a property owner and a real estate broker authorizing the broker to market and sell the property

Answer

A list of properties for sale in a neighborhood

Answer

A contract between two real estate agents

Answer

A government registration of a property for sale