ACEABLE AGENT - PRINCIPLES OF REAL ESTATE II EXAM
2025/2026 QUESTIONS AND ANSWERS 100% PASS
High-Difficulty Practice Questions for Principles of Real Estate II Exam
AGENCY RELATIONSHIPS (Questions 1-15)
Question 1
A real estate agent is showing properties to a prospective buyer. During the third
showing, the buyer reveals confidential financial information, including their
maximum budget and motivation to purchase quickly. The agent has not
discussed agency representation with the buyer. What is the most accurate
statement regarding the agency relationship?
A) No agency relationship exists because there is no written agreement
B) An implied agency may have been created based on the buyer's reasonable
belief that the agent represents them
C) The agent represents the seller exclusively because the agent works for a
brokerage
D) The buyer is considered a customer, not a client
Correct Answer :- B
Explanation: Implied agency can be created through conduct, even without a
written agreement. When a buyer confides confidential information to an agent
who accepts it without clarifying their agency status, a court may find that an
implied agency relationship was created. This is why agents must provide agency
disclosure early in the relationship. Option A is incorrect because written
agreements are required for compensation but not for the existence of an agency
relationship. Option C is incorrect because the agent's representation depends on
whom they have agreed to represent. Option D may be true legally, but the
buyer's reasonable belief could create an implied agency.
,Question 2
A listing agent is showing a property to a prospective buyer. The buyer expresses
interest and asks the agent's opinion about the fair market value. The agent
knows the seller is motivated to accept a lower offer. Which statement is MOST
consistent with the agent's fiduciary duties?
A) "I think the seller would accept $350,000, which is below the listing price."
B) "I can't disclose the seller's motivation, but I can provide you with recent
comparable sales to help you determine fair value."
C) "The seller is desperate, so you should offer $340,000."
D) "I'm not allowed to discuss price with you."
Correct Answer :- B
Explanation: The agent owes fiduciary duties to the seller, including
confidentiality. Disclosing the seller's motivation or suggesting a specific offer
price based on that knowledge would violate the duty of confidentiality and
loyalty. Providing comparable sales helps the buyer make an informed decision
without breaching fiduciary duties. Option A and C breach confidentiality. Option
D is incorrect because agents can discuss price; they just can't disclose
confidential information.
Question 3
A buyer's agent learns that the seller has accepted another offer, but the buyer
still wants to submit a backup offer. The buyer asks the agent to write an offer at
a price significantly below market value. What is the agent's obligation?
A) Refuse to write the offer because it's below market value
B) Write the offer as instructed because the agent must follow lawful instructions
C) Advise the buyer that the offer is unlikely to be accepted but write it if the
buyer insists
D) Contact the seller's agent to determine if the seller would consider a lower
offer
,Correct Answer :- C
Explanation: A buyer's agent must follow lawful instructions but also has a duty to
provide competent advice. Advising the buyer that the offer is unlikely to be
accepted fulfills the duty of reasonable care and diligence. If the buyer insists, the
agent should write the offer. Option A would be refusing to follow instructions.
Option B fails to provide adequate counsel. Option D could be seen as
circumventing the seller's agent and may be unethical.
Question 4
A seller tells their listing agent about a foundation problem that was repaired five
years ago. The seller insists the problem is fully resolved and does not want to
disclose it to buyers. What is the agent's obligation?
A) Honor the seller's request and not disclose the information
B) Disclose the information to potential buyers because it's a material fact
C) Withdraw from the listing agreement
D) Report the seller to the real estate commission
Correct Answer :- B
Explanation: Material facts that could affect a buyer's decision or the property's
value must be disclosed. A past foundation problem, even if repaired, is a material
fact. The agent has a duty to disclose material facts to potential buyers, even over
the seller's objection. The agent should also advise the seller of their disclosure
obligations. Option A violates disclosure duties. Option C may be necessary if the
seller insists on nondisclosure, but disclosure is the first step. Option D may be
appropriate if the seller persists in fraud, but disclosure is the immediate
obligation.
Question 5
A dual agency situation exists when:
A) One agent represents both the buyer and seller in the same transaction
B) Two agents from different brokerages cooperate on a transaction
, C) A property is listed with multiple brokerages
D) An agent represents a buyer and also has a personal interest in the property
Correct Answer :- A
Explanation: Dual agency occurs when one agent (or brokerage) represents both
parties in the same transaction. This requires informed written consent from both
parties. Option B describes cooperation between brokerages. Option C describes
an open listing or multiple listing. Option D describes a conflict of interest that
may require disclosure but is not dual agency.
Question 6
A buyer's agent receives a commission from the seller's broker through the
multiple listing service. In this situation, the buyer's agent is:
A) A subagent of the seller
B) A transaction broker
C) A designated agent for the buyer
D) An agent of the buyer, paid by the seller
Correct Answer :- D
Explanation: The source of commission does not determine agency. A buyer's
agent represents the buyer and owes fiduciary duties to the buyer, even though
the commission is paid from the seller's proceeds. Option A describes a subagent
who represents the seller. Option B describes a facilitator who represents neither
party. Option C may be true if the brokerage uses designated agency, but the key
point is that the agent represents the buyer regardless of who pays.
Question 7
A listing agent shows their listing to a prospective buyer without another agent
present. The buyer has not signed a buyer representation agreement. What is the
agent's agency relationship with the buyer?
A) The agent represents the buyer as a customer
B) The agent represents the seller and has no agency relationship with the buyer
2025/2026 QUESTIONS AND ANSWERS 100% PASS
High-Difficulty Practice Questions for Principles of Real Estate II Exam
AGENCY RELATIONSHIPS (Questions 1-15)
Question 1
A real estate agent is showing properties to a prospective buyer. During the third
showing, the buyer reveals confidential financial information, including their
maximum budget and motivation to purchase quickly. The agent has not
discussed agency representation with the buyer. What is the most accurate
statement regarding the agency relationship?
A) No agency relationship exists because there is no written agreement
B) An implied agency may have been created based on the buyer's reasonable
belief that the agent represents them
C) The agent represents the seller exclusively because the agent works for a
brokerage
D) The buyer is considered a customer, not a client
Correct Answer :- B
Explanation: Implied agency can be created through conduct, even without a
written agreement. When a buyer confides confidential information to an agent
who accepts it without clarifying their agency status, a court may find that an
implied agency relationship was created. This is why agents must provide agency
disclosure early in the relationship. Option A is incorrect because written
agreements are required for compensation but not for the existence of an agency
relationship. Option C is incorrect because the agent's representation depends on
whom they have agreed to represent. Option D may be true legally, but the
buyer's reasonable belief could create an implied agency.
,Question 2
A listing agent is showing a property to a prospective buyer. The buyer expresses
interest and asks the agent's opinion about the fair market value. The agent
knows the seller is motivated to accept a lower offer. Which statement is MOST
consistent with the agent's fiduciary duties?
A) "I think the seller would accept $350,000, which is below the listing price."
B) "I can't disclose the seller's motivation, but I can provide you with recent
comparable sales to help you determine fair value."
C) "The seller is desperate, so you should offer $340,000."
D) "I'm not allowed to discuss price with you."
Correct Answer :- B
Explanation: The agent owes fiduciary duties to the seller, including
confidentiality. Disclosing the seller's motivation or suggesting a specific offer
price based on that knowledge would violate the duty of confidentiality and
loyalty. Providing comparable sales helps the buyer make an informed decision
without breaching fiduciary duties. Option A and C breach confidentiality. Option
D is incorrect because agents can discuss price; they just can't disclose
confidential information.
Question 3
A buyer's agent learns that the seller has accepted another offer, but the buyer
still wants to submit a backup offer. The buyer asks the agent to write an offer at
a price significantly below market value. What is the agent's obligation?
A) Refuse to write the offer because it's below market value
B) Write the offer as instructed because the agent must follow lawful instructions
C) Advise the buyer that the offer is unlikely to be accepted but write it if the
buyer insists
D) Contact the seller's agent to determine if the seller would consider a lower
offer
,Correct Answer :- C
Explanation: A buyer's agent must follow lawful instructions but also has a duty to
provide competent advice. Advising the buyer that the offer is unlikely to be
accepted fulfills the duty of reasonable care and diligence. If the buyer insists, the
agent should write the offer. Option A would be refusing to follow instructions.
Option B fails to provide adequate counsel. Option D could be seen as
circumventing the seller's agent and may be unethical.
Question 4
A seller tells their listing agent about a foundation problem that was repaired five
years ago. The seller insists the problem is fully resolved and does not want to
disclose it to buyers. What is the agent's obligation?
A) Honor the seller's request and not disclose the information
B) Disclose the information to potential buyers because it's a material fact
C) Withdraw from the listing agreement
D) Report the seller to the real estate commission
Correct Answer :- B
Explanation: Material facts that could affect a buyer's decision or the property's
value must be disclosed. A past foundation problem, even if repaired, is a material
fact. The agent has a duty to disclose material facts to potential buyers, even over
the seller's objection. The agent should also advise the seller of their disclosure
obligations. Option A violates disclosure duties. Option C may be necessary if the
seller insists on nondisclosure, but disclosure is the first step. Option D may be
appropriate if the seller persists in fraud, but disclosure is the immediate
obligation.
Question 5
A dual agency situation exists when:
A) One agent represents both the buyer and seller in the same transaction
B) Two agents from different brokerages cooperate on a transaction
, C) A property is listed with multiple brokerages
D) An agent represents a buyer and also has a personal interest in the property
Correct Answer :- A
Explanation: Dual agency occurs when one agent (or brokerage) represents both
parties in the same transaction. This requires informed written consent from both
parties. Option B describes cooperation between brokerages. Option C describes
an open listing or multiple listing. Option D describes a conflict of interest that
may require disclosure but is not dual agency.
Question 6
A buyer's agent receives a commission from the seller's broker through the
multiple listing service. In this situation, the buyer's agent is:
A) A subagent of the seller
B) A transaction broker
C) A designated agent for the buyer
D) An agent of the buyer, paid by the seller
Correct Answer :- D
Explanation: The source of commission does not determine agency. A buyer's
agent represents the buyer and owes fiduciary duties to the buyer, even though
the commission is paid from the seller's proceeds. Option A describes a subagent
who represents the seller. Option B describes a facilitator who represents neither
party. Option C may be true if the brokerage uses designated agency, but the key
point is that the agent represents the buyer regardless of who pays.
Question 7
A listing agent shows their listing to a prospective buyer without another agent
present. The buyer has not signed a buyer representation agreement. What is the
agent's agency relationship with the buyer?
A) The agent represents the buyer as a customer
B) The agent represents the seller and has no agency relationship with the buyer
