Agency Practice Exam UPDATED
QUESTIONS AND CORRECT ANSWERS
The buyer - CORRECT ANSWER A salesperson working with a co-operating broker has a
fiduciary relationship to all EXCEPT:
Select one:
A. The seller
B. The buyer
C. The co-operating broker
D. The listing broker
Purchase agreement - CORRECT ANSWER All of the following are examples of agency
relationship EXCEPT
Select one:
A. Listing agreement
B. Purchase agreement
C. Property management agreement
D. Broker/salesperson agreement
Client or principal - CORRECT ANSWER An agent has a fiduciary relationship with the
Select one:
A. Client or principal
B. Customer
C. Agent
D. Subagent
Procuring cause - CORRECT ANSWER The agent whose actions are the primary reason for a
sale taking place is said to be the:
Select one:
,A. Designated agent
B. Procuring cause
C. Duty agent
D. Agent of record
Designated agent - CORRECT ANSWER A person authorized by the broker to act as the agent
of a specific principal is known as the:
Select one:
A. Designated agent
B. Seller's agent
C. Broker's agent
D. Fiduciary agent
Single agency - CORRECT ANSWER When an agent represents only one of the parties to a
transaction this is known as:
Select one:
A. Single agency
B. Dual agency
C. Implied agency
D. Normal agency
Either Buyer or Seller - CORRECT ANSWER In a Buyer Agency agreement, the commission
is paid by:
Select one:
A. Seller
B. Buyer
C. Either Buyer or Seller
D. There is no commission in a buyer agency agreement.
, Loyalty - CORRECT ANSWER The fiduciary duty that says a broker must be faithful to his
principal and work for no other interested party without the principal's knowledge or permission is:
Select one:
A. Loyalty
B. Obedience
C. Accountability
D. Reasonable care
Conversion - CORRECT ANSWER The practice of using commingled funds as the broker's
own money is called:
Select one:
A. Conversion
B. Fraud
C. Mingling
D. Disloyalty
C. Tell the buyer because it is a material fact. - CORRECT ANSWER An agent notices some
cracks in the slab while showing a house. He should
Select one:
A. Not say anything because it is not in the seller's best interest.
B. Not say anything because the seller didn't tell him about it.
C. Tell the buyer because it is a material fact.
D. Not tell the buyer because the sale might fall through.
Special agency - CORRECT ANSWER The type of agency that exists between the real estate
agent and his client is usually
Select one:
A. Special agency
B. General agency
QUESTIONS AND CORRECT ANSWERS
The buyer - CORRECT ANSWER A salesperson working with a co-operating broker has a
fiduciary relationship to all EXCEPT:
Select one:
A. The seller
B. The buyer
C. The co-operating broker
D. The listing broker
Purchase agreement - CORRECT ANSWER All of the following are examples of agency
relationship EXCEPT
Select one:
A. Listing agreement
B. Purchase agreement
C. Property management agreement
D. Broker/salesperson agreement
Client or principal - CORRECT ANSWER An agent has a fiduciary relationship with the
Select one:
A. Client or principal
B. Customer
C. Agent
D. Subagent
Procuring cause - CORRECT ANSWER The agent whose actions are the primary reason for a
sale taking place is said to be the:
Select one:
,A. Designated agent
B. Procuring cause
C. Duty agent
D. Agent of record
Designated agent - CORRECT ANSWER A person authorized by the broker to act as the agent
of a specific principal is known as the:
Select one:
A. Designated agent
B. Seller's agent
C. Broker's agent
D. Fiduciary agent
Single agency - CORRECT ANSWER When an agent represents only one of the parties to a
transaction this is known as:
Select one:
A. Single agency
B. Dual agency
C. Implied agency
D. Normal agency
Either Buyer or Seller - CORRECT ANSWER In a Buyer Agency agreement, the commission
is paid by:
Select one:
A. Seller
B. Buyer
C. Either Buyer or Seller
D. There is no commission in a buyer agency agreement.
, Loyalty - CORRECT ANSWER The fiduciary duty that says a broker must be faithful to his
principal and work for no other interested party without the principal's knowledge or permission is:
Select one:
A. Loyalty
B. Obedience
C. Accountability
D. Reasonable care
Conversion - CORRECT ANSWER The practice of using commingled funds as the broker's
own money is called:
Select one:
A. Conversion
B. Fraud
C. Mingling
D. Disloyalty
C. Tell the buyer because it is a material fact. - CORRECT ANSWER An agent notices some
cracks in the slab while showing a house. He should
Select one:
A. Not say anything because it is not in the seller's best interest.
B. Not say anything because the seller didn't tell him about it.
C. Tell the buyer because it is a material fact.
D. Not tell the buyer because the sale might fall through.
Special agency - CORRECT ANSWER The type of agency that exists between the real estate
agent and his client is usually
Select one:
A. Special agency
B. General agency
