JURRI2990 NATIONAL TOPIC TESTER - LAWS OF AGENCY QUESTIONS WITH CORRECT ANSWERS GRADED A+ FOR 2026 ASSURED EXCEL!!

JURRI2990 NATIONAL TOPIC TESTER
- LAWS OF AGENCY QUESTIONS
WITH CORRECT ANSWERS GRADED
A+ FOR 2026 ASSURED EXCEL!!
A general agency empowers the agent to:



Select one:

A. transact matters of all types for the client

B. transact the client's affairs in a certain business

C. perform only specific acts for the client

D. perform any legal act for the client - CORRECT ANSWERS-A general agent is authorized to
perform any and all acts associated with a specific service. The other choices are either too
broad or too narrow.



The correct answer is: transact the client's affairs in a certain business



All of the following are examples of dual agency except:



Select one:

A. a broker representing the buyer and seller, with consent from both

B. escrow agents

C. a broker representing the buyer and seller, without consent from either

D. two salespersons representing a different buyer and seller - CORRECT ANSWERS-Escrow
agents are dual agents because they hold money for the benefit of the buyer and seller in a
transaction. Even when a dual agency is undisclosed, it is still a dual agency, though the contract

,may be rescinded. However, if two salespersons represent a different buyer and seller in a
transaction (for the same broker), that is a designated agency.



The correct answer is: two salespersons representing a different buyer and seller



Bill (a broker with XYZ Realty) sells a property listed with Gene (an independent broker). In this
transaction, what is the relationship between Bill and Gene?



Select one:

A. Bill is the agent; Gene is the principal

B. Bill is the trustee; Gene is the trustor

C. Bill is the sub-agent; Gene is the agent

D. either A or C could be correct - CORRECT ANSWERS-Pay close attention to what the question
asks--the status of the relationship between Gene and Bill, not the relationship between Gene,
Bill, and the seller. Gene is Broker Bill's principal and Broker Bill is his agent. If the question had
asked about the relationship between the two brokers and the seller, Gene would be the agent
of the seller and Bill would be the subagent of the seller (Bill is NOT the subagent of Gene).



The correct answer is: Bill is the agent; Gene is the principal



An owner is listing his rental property with a broker. The owner tells the broker that he only
wants to rent to females since, based on past experience, they cause less damage. What should
the broker do?



Select one:

A. advise the owner that this restriction is illegal

B. follow the owner's instruction because it is his fiduciary duty (to protect the client's interest)

C. accept the listing and give preferential treatment to female applicants

,D. follow the owner's instruction because of the fiduciary relationship - CORRECT ANSWERS-
What the owner is asking is illegal. If the broker accepts the listing, he would be in violation of
the law. The broker is not under any fiduciary obligation to obey this illegal instruction of the
principal (owner).



The correct answer is: advise the owner that this restriction is illegal



AIwomanIwantsItoIbuyIpropertyIthatIisIlistedIwithIherIsisterI(aIbroker).IHowever,IsheIdoesInotIwantIh
erIsisterItoItellItheIsellerIaboutItheirIrelationship.ITheIsisterIshould:



SelectIone:

A.ItellItheIsellerIthatItheIprospectiveIbuyerIisIaIrelative

B.IletIanotherIpersonIbuyItheIpropertyIandIturnItheIdeedIoverItoItheIsister

C.IsellItheIpropertyIwithoutIdisclosingItheIrelationship

D.IfindIanotherIlistingIagentItoIavoidIaIconflictIofIinterestI-IICORRECTIANSWERS-
YouImustIdiscloseIanyIinterestIyouIhaveIinIproperty,IlikeIaIfamilyIrelationshipIwithItheIbuyer.



TheIcorrectIanswerIis:ItellItheIsellerIthatItheIprospectiveIbuyerIisIaIrelative



AIbuyer'sIbrokerIpresentedIanIofferIonIpropertyIlistedIbyIanotherIbroker.IProperIagencyIdisclosuresI
haveIbeenImade.IPriorItoIofferIandIacceptance,ItheIsellingIbrokerIlearnsIofIaIzoningIchangeIthatIwillI
affectItheIvalueIofItheIproperty.ITheIsellingIbrokerItellsIhisIclientIandItheIofferIisIwithdrawn.IWhichIof
ItheIfollowingIstatementsIisIcorrect?




SelectIone:

A.ItheIsellingIbrokerIhasIviolatedIhisIfiduciaryIrelationshipIwithItheIseller

B.ItheIsellingIbrokerIhasIexercisedIdueIcareIandIloyaltyItoIhisIprincipal

C.ItheIbuyerImayInotIwithdrawIhisIoffer

, D.IdisclosureIofIthisIinformationIviolatesIstateIlicensingIregulationsI-IICORRECTIANSWERS-
TheIbrokerIhasIaIfiduciaryIdutyItoIdiscloseImaterialIfacts.ITheIzoningIchangeIisImaterialIbecauseIitIwil
lIsignificantlyIimpactItheIvalueIofItheIproperty.ITheIsellingIbrokerIupholdsItheIdutiesIofIloyaltyIandIdu
eIcareIbyIavoidingIaIviolationIofIlaw.



TheIcorrectIanswerIis:ItheIsellingIbrokerIhasIexercisedIdueIcareIandIloyaltyItoIhisIprincipal



AllIofItheIfollowingIareIfiduciaryIdutiesIowedItoIaIclient,IEXCEPT:



SelectIone:

A.ItoIuseIcareIinIfillingIoutIcontractIforms

B.ItoIobeyIallIclientIinstructions

C.ItoIbeIloyalItoItheIclient

D.ItoIbeIaccountableIforIdocumentsIandIfundsI-IICORRECTIANSWERS-
TheIfiduciaryIdutiesIthatIanIagentIowesItheIclient/principalIincludeItheIdutyIofIcare,ItheIdutyIofIacco
unting,IandItheIdutyIofIloyalty.IOfItheIchoicesIpresented,ItheIdutyI"toIobeyIallIclientIinstructions"IisIt
heIbestIchoiceIbecauseIitIisItooIbroadlyIstated.IThatIis,IitIisInotIalwaysItrue.IAnIagentIisIonlyIobligatedI
toIobeyILAWFULIclientIinstructions.IFollowingIallIclientIinstructionsIcouldIviolateIotherIdutiesI(loyalt
y)IorIevenItheIlawIifIitIresultsIinIanIillegalIactIorIomission.



TheIcorrectIanswerIis:ItoIobeyIallIclientIinstructions



AnIagencyIrelationshipIbetweenIsellerIandIbrokerImayIbeIterminatedIby:



SelectIone:

A.IMutualIconsent

B.IRenunciationIofItheIagreementIbyItheIbroker

C.IExpirationIofItheIagreement