REE 3043 - EXAM 3 QUESTIONS AND ANSWERS 2026
Broker license - Answers - The authority granted by a state for one to own and operate
a real estate brokerage business; the most complete type of real estate license.
Buyer agency agreement - Answers - A contract for real estate brokerage services
between a buyer and a real estate agent. The broker receives compensation for
successfully locating a property for the buyer to purchase.
Commission - Answers - Payment a real estate salesperson receives for services
rendered, usually expressed as a percentage of the property sale price and not usually
paid until the transaction is closed.
Designated agent - Answers - In case a brokerage firm is agent for both a seller and a
buyer, the firm sometimes designates one salesperson to serve the buyer and one to
serve the seller. The two salespersons are presumed to maintain the privacy, and serve
the interest of the party they represent.
Discrimination in housing - Answers - Federal and state laws prohibit discrimination in
housing on the basis of race, color, religion, national origin, sex, familial status, and
handicap.
Dual agency - Answers - A situation in which a person or firm has an agency and
fiduciary relationship to both parties—seller and buyer—of a transaction.
Errors and omission insurance - Answers - A type of insurance that indemnifies
professionals if they make an error in their profession or if they omit something
important from their analyses.
Exclusive agency listing - Answers - An agreement between a seller of property and a
broker in which the seller agrees to pay a commission to the broker if anyone other than
the owner finds a buyer, during the period of the agreement.
Exclusive right of sale listing - Answers - An agreement between a seller of property and
a broker in which the broker is assured of receiving a commission if the broker or
anyone else, including the owner, finds a buyer during the period of the agreement.
Fiduciary relationship - Answers - The special duties and obligations to a principal
required of an agent, including complete loyalty, confidentiality, obedience, disclosure,
accounting, care, skill, and due diligence.
General agent - Answers - One who is empowered to represent a principal, often a
business firm, in its business relationships. A general agent can contract and bind the
principal within the confines of the business or employment relationship.
, Internet marketing - Answers - Use of the Internet to advertise real estate services, to
market properties, and to provide information about specific properties. While few
properties are sold exclusively through the Internet, it has become a central tool to real
estate marketing today.
Law of agency - Answers - The legal rights, duties, and liabilities of principal, agent, and
third parties as a result of the agency relationship between them.
Licensing laws - Answers - State laws that authorize persons who meet specified
qualifications to engage in a business or profession.
Listing contract - Answers - An agreement between an owner of real estate and a real
estate broker that obligates the broker to attempt to sell the property under specified
conditions and terms. It obligates the property owner to pay a commission to the broker
if the broker is successful in obtaining a ready, willing, and able buyer for the property
on terms specified or on terms acceptable to the seller.
Market segmentation - Answers - Identification and delineation of submarkets.
Multiple listing service (MLS) - Answers - Sharing of property sales listings by a number
of real estate brokers with an agreement as to how costs and commissions are to be
shared.
National Association of Realtors - Answers - A principal trade or professional
organization of real estate brokers. Members agree to abide by a code of ethics.
Net listing - Answers - Type of contract in which sellers specify the amount they will
accept from the sale, with brokers keeping all proceeds in excess of that amount.
Open listing - Answers - Agreement between the seller of property and a broker that
provides for the broker to receive a commission if he or she sells the property. No
exclusive protection is provided to the broker.
Principal - Answers - In brokerage, the person giving authority to an agent; in finance,
the amount borrowed and owed on a loan.
Real estate commission - Answers - Appointed commission responsible for overseeing
the implementation and administration of a state's real estate license law. It usually is
empowered to grant, revoke, or suspend licenses, and otherwise discipline real estate
brokers operating in the state.
Recovery fund - Answers - Reserve of funds collected from real estate license fees to
pay for losses to clients legally judged to have been caused by a licensed salesperson
or broker. The existence of such funds varies from state to state.
Broker license - Answers - The authority granted by a state for one to own and operate
a real estate brokerage business; the most complete type of real estate license.
Buyer agency agreement - Answers - A contract for real estate brokerage services
between a buyer and a real estate agent. The broker receives compensation for
successfully locating a property for the buyer to purchase.
Commission - Answers - Payment a real estate salesperson receives for services
rendered, usually expressed as a percentage of the property sale price and not usually
paid until the transaction is closed.
Designated agent - Answers - In case a brokerage firm is agent for both a seller and a
buyer, the firm sometimes designates one salesperson to serve the buyer and one to
serve the seller. The two salespersons are presumed to maintain the privacy, and serve
the interest of the party they represent.
Discrimination in housing - Answers - Federal and state laws prohibit discrimination in
housing on the basis of race, color, religion, national origin, sex, familial status, and
handicap.
Dual agency - Answers - A situation in which a person or firm has an agency and
fiduciary relationship to both parties—seller and buyer—of a transaction.
Errors and omission insurance - Answers - A type of insurance that indemnifies
professionals if they make an error in their profession or if they omit something
important from their analyses.
Exclusive agency listing - Answers - An agreement between a seller of property and a
broker in which the seller agrees to pay a commission to the broker if anyone other than
the owner finds a buyer, during the period of the agreement.
Exclusive right of sale listing - Answers - An agreement between a seller of property and
a broker in which the broker is assured of receiving a commission if the broker or
anyone else, including the owner, finds a buyer during the period of the agreement.
Fiduciary relationship - Answers - The special duties and obligations to a principal
required of an agent, including complete loyalty, confidentiality, obedience, disclosure,
accounting, care, skill, and due diligence.
General agent - Answers - One who is empowered to represent a principal, often a
business firm, in its business relationships. A general agent can contract and bind the
principal within the confines of the business or employment relationship.
, Internet marketing - Answers - Use of the Internet to advertise real estate services, to
market properties, and to provide information about specific properties. While few
properties are sold exclusively through the Internet, it has become a central tool to real
estate marketing today.
Law of agency - Answers - The legal rights, duties, and liabilities of principal, agent, and
third parties as a result of the agency relationship between them.
Licensing laws - Answers - State laws that authorize persons who meet specified
qualifications to engage in a business or profession.
Listing contract - Answers - An agreement between an owner of real estate and a real
estate broker that obligates the broker to attempt to sell the property under specified
conditions and terms. It obligates the property owner to pay a commission to the broker
if the broker is successful in obtaining a ready, willing, and able buyer for the property
on terms specified or on terms acceptable to the seller.
Market segmentation - Answers - Identification and delineation of submarkets.
Multiple listing service (MLS) - Answers - Sharing of property sales listings by a number
of real estate brokers with an agreement as to how costs and commissions are to be
shared.
National Association of Realtors - Answers - A principal trade or professional
organization of real estate brokers. Members agree to abide by a code of ethics.
Net listing - Answers - Type of contract in which sellers specify the amount they will
accept from the sale, with brokers keeping all proceeds in excess of that amount.
Open listing - Answers - Agreement between the seller of property and a broker that
provides for the broker to receive a commission if he or she sells the property. No
exclusive protection is provided to the broker.
Principal - Answers - In brokerage, the person giving authority to an agent; in finance,
the amount borrowed and owed on a loan.
Real estate commission - Answers - Appointed commission responsible for overseeing
the implementation and administration of a state's real estate license law. It usually is
empowered to grant, revoke, or suspend licenses, and otherwise discipline real estate
brokers operating in the state.
Recovery fund - Answers - Reserve of funds collected from real estate license fees to
pay for losses to clients legally judged to have been caused by a licensed salesperson
or broker. The existence of such funds varies from state to state.
