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Revision Examination Tests
“Come all for this Greatness”
... 100% Correct Ans ...
REAL ESTATE 2- LAWS OF AGENCY AND FIDUCIARY DUTIES
TEST 2024-2025 ACTUAL EXAM COMPLETE 200-
QUESTIONS AND CORRECT DETAILED ANSWERS
Quiz 1) Which of the following is an illegal activity for a broker under agency law?
a. Accepting commissions from both the buyer and the seller.
b. Acting as an escrow.
c. Selling their own property without disclosing their license status.
d. Depositing additional personal funds into a client's trust account.
Ans: d. Depositing additional personal funds into a client's trust account.
Quiz 2) All of the following statements are true concerning an in-house sale, except:
a. the listing broker can buy the property themselves.
b. the listing broker can act as an agent for the seller only.
c. the listing broker can act as an agent for the buyer only.
d. the listing broker can act as a dual agent.
Ans: c. the listing broker can act as an agent for the buyer only.
Quiz 3) A broker who simultaneously represents the best interests of both opposing
parties in a transaction is known as a(n):
a. finder.
b. dual agent.
c. subagent.
d. unlawful agent.
Ans: b. dual agent.
Quiz 4) A seller's broker receives a written offer on a listed property. The broker is
certain the seller will not accept it. Which of the following may the broker not do?
a. Write new terms on the back of the offer and go back to the buyer for approval.
b. Change the offer price to what the broker thinks the seller will accept, and initial
the change.
c. Present the offer to the seller as written.
d. Present the offer to the seller, but advise them not to accept it.
,Ans: b. Change the offer price to what the broker thinks the seller will accept, and
initial the change.
Quiz 5) In the context of the relationship between the listing broker and the seller, the
broker is a(n):
a. agent of the seller.
b. dual agent.
c. empolyer of the seller.
d. subagent of the seller.
Ans: a. agent of the seller.
Quiz 6) Who may withdraw money from a trust fund?
a. Any person employed by the broker.
b. Only salespeople in the broker's employ.
c. A corporate director.
d. Any authorized employee of the broker.
Ans: d. Any authorized employee of the broker.
Quiz 7) A valid agency requires a(n):
a. written agreement.
b. express agreement.
c. attorney-in-fact.
d. None of these.
Ans: d. None of these.
Quiz 8) What is not essential to the creation of an agency relationship?
a. Agreement to pay consideration.
b. Competency of the principal.
c. Consent of the principal.
d. A fiduciary relationship.
Ans: a. Agreement to pay consideration.
Quiz 9) Fee amounts are always:
a. 6% of the price received for a property.
b. 2%-8% of the price received for a property.
c. nonnegotiable and set by law.
d. negotiable and not fixed by law.
Ans: d. negotiable and not fixed by law.
Quiz 10) An agent discloses the race, color, and creed of a prospective buyer to their
principal. Has the agent committed a discriminatory act?
a. No, since an agent is obligated to disclose to their principal all material facts that
might influence the principal's decisions concerning any real estate transaction.
,b. No, since a fiduciary relationship exists between the agent and the principal and
the agent must exercise good faith in working for the principal's best interest.
c. Yes, since the race, creed or color of the prospect does not matter.
d. Yes, but there is no penalty.
Ans: c. Yes, since the race, creed or color of the prospect does not matter.
Quiz 11) A real estate broker is guilty of conversion if they:
a. acted as a dual agent without the approval of all parties.
b. split their commission with an unlicensed party.
c. used trust funds for their personal use.
d. commingled funds.
Ans: c. used trust funds for their personal use.
Quiz 12) A property owner tells the broker that the house is connected to the sewer.
The broker relays this information to the buyer, who later finds that the house has
septic system in need of repair. The buyer would sue:
a. the broker and the owner.
b. no one, as they should have checked.
c. the broker.
d. the owner.
Ans: a. the broker and the owner.
Quiz 13) Admiralty Escrow offers a $100 "referral fee" to any real estate agent who
opens escrow during the month of May. Under the Real Estate Settlement
Procedures Act (RESPA), such an offer:
a. is always allowed.
b. is allowed if disclosed to both the buyer and seller.
c. must be disclosed in the settlement statement.
d. is not allowed.
Ans: d. is not allowed.
Quiz 14) Which of these would create an agency relationship:
a. implication.
b. ratification.
c. express agreement.
d. Any of the above.
Ans: d. Any of the above.
Quiz 15) When a dual agency is established in a targeted sales transaction, the
broker and their agents may not pass on any information from one party to the other
relating to:
a. the price the buyer may be willing to pay.
b. the terms of payment the seller may be willing to accept.
c. Both a. and b.
d. Neither a. nor b.
, Ans: c. Both a. and b.
Quiz 16) In addition to a fiduciary duty owed to the client in a transaction, a
salesperson owes a(n) __________ to act with good faith and honesty towards the
opposing party.
a. partial duty
b. general duty
c. legislative duty
d. gratuitous duty
Ans: b. general duty
Quiz 17) Commingling means the opposite of:
a. subrogation.
b. mixing.
c. subordination.
d. separation.
Ans: d. separation.
Quiz 18) A broker represents only the buyer in a real estate sale. This is referred to
as a(n):
a. single agency.
b. implied agency.
c. dual agency.
d. general agency.
Ans: a. single agency.
Quiz 19) Which will not terminate an agency relationship?
a. Mutual consent.
b. Death of the agent or principal.
c. Estoppel.
d. Destruction of the property.
Ans: c. Estoppel.
Quiz 20) Compliance with the agency law is required in which of the following
transactions?
a. A duplex sold by an owner.
b. A trustee's sale.
c. A transfer between parent and child. d. A residential lease with a two-year term.
Ans: d. A residential lease with a two-year term.
Quiz 21) The fiduciary relationship between an agent and the principal is most
similar to the fiduciary relationship between a(n):
a. borrower and lender.
b. vendor and vendee.
Revision Examination Tests
“Come all for this Greatness”
... 100% Correct Ans ...
REAL ESTATE 2- LAWS OF AGENCY AND FIDUCIARY DUTIES
TEST 2024-2025 ACTUAL EXAM COMPLETE 200-
QUESTIONS AND CORRECT DETAILED ANSWERS
Quiz 1) Which of the following is an illegal activity for a broker under agency law?
a. Accepting commissions from both the buyer and the seller.
b. Acting as an escrow.
c. Selling their own property without disclosing their license status.
d. Depositing additional personal funds into a client's trust account.
Ans: d. Depositing additional personal funds into a client's trust account.
Quiz 2) All of the following statements are true concerning an in-house sale, except:
a. the listing broker can buy the property themselves.
b. the listing broker can act as an agent for the seller only.
c. the listing broker can act as an agent for the buyer only.
d. the listing broker can act as a dual agent.
Ans: c. the listing broker can act as an agent for the buyer only.
Quiz 3) A broker who simultaneously represents the best interests of both opposing
parties in a transaction is known as a(n):
a. finder.
b. dual agent.
c. subagent.
d. unlawful agent.
Ans: b. dual agent.
Quiz 4) A seller's broker receives a written offer on a listed property. The broker is
certain the seller will not accept it. Which of the following may the broker not do?
a. Write new terms on the back of the offer and go back to the buyer for approval.
b. Change the offer price to what the broker thinks the seller will accept, and initial
the change.
c. Present the offer to the seller as written.
d. Present the offer to the seller, but advise them not to accept it.
,Ans: b. Change the offer price to what the broker thinks the seller will accept, and
initial the change.
Quiz 5) In the context of the relationship between the listing broker and the seller, the
broker is a(n):
a. agent of the seller.
b. dual agent.
c. empolyer of the seller.
d. subagent of the seller.
Ans: a. agent of the seller.
Quiz 6) Who may withdraw money from a trust fund?
a. Any person employed by the broker.
b. Only salespeople in the broker's employ.
c. A corporate director.
d. Any authorized employee of the broker.
Ans: d. Any authorized employee of the broker.
Quiz 7) A valid agency requires a(n):
a. written agreement.
b. express agreement.
c. attorney-in-fact.
d. None of these.
Ans: d. None of these.
Quiz 8) What is not essential to the creation of an agency relationship?
a. Agreement to pay consideration.
b. Competency of the principal.
c. Consent of the principal.
d. A fiduciary relationship.
Ans: a. Agreement to pay consideration.
Quiz 9) Fee amounts are always:
a. 6% of the price received for a property.
b. 2%-8% of the price received for a property.
c. nonnegotiable and set by law.
d. negotiable and not fixed by law.
Ans: d. negotiable and not fixed by law.
Quiz 10) An agent discloses the race, color, and creed of a prospective buyer to their
principal. Has the agent committed a discriminatory act?
a. No, since an agent is obligated to disclose to their principal all material facts that
might influence the principal's decisions concerning any real estate transaction.
,b. No, since a fiduciary relationship exists between the agent and the principal and
the agent must exercise good faith in working for the principal's best interest.
c. Yes, since the race, creed or color of the prospect does not matter.
d. Yes, but there is no penalty.
Ans: c. Yes, since the race, creed or color of the prospect does not matter.
Quiz 11) A real estate broker is guilty of conversion if they:
a. acted as a dual agent without the approval of all parties.
b. split their commission with an unlicensed party.
c. used trust funds for their personal use.
d. commingled funds.
Ans: c. used trust funds for their personal use.
Quiz 12) A property owner tells the broker that the house is connected to the sewer.
The broker relays this information to the buyer, who later finds that the house has
septic system in need of repair. The buyer would sue:
a. the broker and the owner.
b. no one, as they should have checked.
c. the broker.
d. the owner.
Ans: a. the broker and the owner.
Quiz 13) Admiralty Escrow offers a $100 "referral fee" to any real estate agent who
opens escrow during the month of May. Under the Real Estate Settlement
Procedures Act (RESPA), such an offer:
a. is always allowed.
b. is allowed if disclosed to both the buyer and seller.
c. must be disclosed in the settlement statement.
d. is not allowed.
Ans: d. is not allowed.
Quiz 14) Which of these would create an agency relationship:
a. implication.
b. ratification.
c. express agreement.
d. Any of the above.
Ans: d. Any of the above.
Quiz 15) When a dual agency is established in a targeted sales transaction, the
broker and their agents may not pass on any information from one party to the other
relating to:
a. the price the buyer may be willing to pay.
b. the terms of payment the seller may be willing to accept.
c. Both a. and b.
d. Neither a. nor b.
, Ans: c. Both a. and b.
Quiz 16) In addition to a fiduciary duty owed to the client in a transaction, a
salesperson owes a(n) __________ to act with good faith and honesty towards the
opposing party.
a. partial duty
b. general duty
c. legislative duty
d. gratuitous duty
Ans: b. general duty
Quiz 17) Commingling means the opposite of:
a. subrogation.
b. mixing.
c. subordination.
d. separation.
Ans: d. separation.
Quiz 18) A broker represents only the buyer in a real estate sale. This is referred to
as a(n):
a. single agency.
b. implied agency.
c. dual agency.
d. general agency.
Ans: a. single agency.
Quiz 19) Which will not terminate an agency relationship?
a. Mutual consent.
b. Death of the agent or principal.
c. Estoppel.
d. Destruction of the property.
Ans: c. Estoppel.
Quiz 20) Compliance with the agency law is required in which of the following
transactions?
a. A duplex sold by an owner.
b. A trustee's sale.
c. A transfer between parent and child. d. A residential lease with a two-year term.
Ans: d. A residential lease with a two-year term.
Quiz 21) The fiduciary relationship between an agent and the principal is most
similar to the fiduciary relationship between a(n):
a. borrower and lender.
b. vendor and vendee.
