Page 1 of 19
LAWS OF AGENCY AND FIDUCIARY DUTY:
CALIFORNIA 2026 EXAM COMPLETE (43)
CURRENT QUESTIONS AND CORRECT
DETAILED ANSWER|TOP-RATED A+.
FIDUCIARY
Prepare for the Laws of Agency and Fiduciary Duty: California
Exam with this concise study resource covering agency
principles, fiduciary responsibilities, and state-specific
regulations. It reinforces key concepts and exam-style questions
for effective preparation. Suitable for individuals preparing for
California real estate or fiduciary licensing exams.
An agent exceeds a secret limitation in the agency
agreement while dealing with a third party. Which statement
would be correct?
a. The agent could be personally liable to the principal.
b.The third party could hold the principal liable for the
agent's action.
c.Both of these are correct.
d.Neither of these is correct. ✓ ✓ ...... ANSWER ....... c.
Both of these are correct
, Page 2 of 19
Which is TRUE about real estate agents' liability? a. An agent
will always be liable for disobeying a principal's instructions.
b. An agent will not be liable for a tort committed at the
direction of the principal.
c. The principal will never be liable for acts of the agent after
termination of the agency.
d. An agent can be held liable for a tort committed by the
agent during the agency ✓ ✓ ...... ANSWER ....... d. an
agent can be liable for a tort committed by the agent during
the agency
When an agent commits a tort while carrying out agency
duties, the
a. principal has no liability for the tort.
b. principal would not be liable if the principal told the agent
not to commit any torts.
c. agent is exonerated from liability for the tort because the
act was committed in an agency capacity.
d. agent would be personally liable for the tort. ✓ ✓ ......
ANSWER ....... d. agent would be personally liable for the
tort
, Page 3 of 19
When broker Clyde died, he had 36 exclusive listings. The
executor of his estate, who was also a broker, wanted to
continue the business until it could be sold. The executor
must
a.notify the owners that he or she has taken over the duties
of broker Clyde.
b.obtain California Department of Real Estate approval for
the substitution.
c.renegotiate all listings.
d.record his authority. ✓ ✓ ...... ANSWER ....... c.
renegotiate all listings
All these events would terminate an agency EXCEPT
a.the death of a corporate officer of the agent's principal.
b.agreement of the parties.
c.renunciation by the principal.
d.extinction of the subject matter. ✓ ✓ ...... ANSWER .......
a. the death of a corporate officer of the agent's principal
An agency for a stated period of time would be terminated
before the expiration date by all these EXCEPT
LAWS OF AGENCY AND FIDUCIARY DUTY:
CALIFORNIA 2026 EXAM COMPLETE (43)
CURRENT QUESTIONS AND CORRECT
DETAILED ANSWER|TOP-RATED A+.
FIDUCIARY
Prepare for the Laws of Agency and Fiduciary Duty: California
Exam with this concise study resource covering agency
principles, fiduciary responsibilities, and state-specific
regulations. It reinforces key concepts and exam-style questions
for effective preparation. Suitable for individuals preparing for
California real estate or fiduciary licensing exams.
An agent exceeds a secret limitation in the agency
agreement while dealing with a third party. Which statement
would be correct?
a. The agent could be personally liable to the principal.
b.The third party could hold the principal liable for the
agent's action.
c.Both of these are correct.
d.Neither of these is correct. ✓ ✓ ...... ANSWER ....... c.
Both of these are correct
, Page 2 of 19
Which is TRUE about real estate agents' liability? a. An agent
will always be liable for disobeying a principal's instructions.
b. An agent will not be liable for a tort committed at the
direction of the principal.
c. The principal will never be liable for acts of the agent after
termination of the agency.
d. An agent can be held liable for a tort committed by the
agent during the agency ✓ ✓ ...... ANSWER ....... d. an
agent can be liable for a tort committed by the agent during
the agency
When an agent commits a tort while carrying out agency
duties, the
a. principal has no liability for the tort.
b. principal would not be liable if the principal told the agent
not to commit any torts.
c. agent is exonerated from liability for the tort because the
act was committed in an agency capacity.
d. agent would be personally liable for the tort. ✓ ✓ ......
ANSWER ....... d. agent would be personally liable for the
tort
, Page 3 of 19
When broker Clyde died, he had 36 exclusive listings. The
executor of his estate, who was also a broker, wanted to
continue the business until it could be sold. The executor
must
a.notify the owners that he or she has taken over the duties
of broker Clyde.
b.obtain California Department of Real Estate approval for
the substitution.
c.renegotiate all listings.
d.record his authority. ✓ ✓ ...... ANSWER ....... c.
renegotiate all listings
All these events would terminate an agency EXCEPT
a.the death of a corporate officer of the agent's principal.
b.agreement of the parties.
c.renunciation by the principal.
d.extinction of the subject matter. ✓ ✓ ...... ANSWER .......
a. the death of a corporate officer of the agent's principal
An agency for a stated period of time would be terminated
before the expiration date by all these EXCEPT
