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California Real Estate License: Agency,
Appraisal, Contracts, and Settlement Questions And Correct Detailed Answers (Verified Answers) Already Graded A+
1. Question: What is the fiduciary duty of agents representing a party?
Correct Answer: All agents owe the same fiduciary duties.
2. Question: What must a salesperson do if they have a dual agency?
Correct Answer: They must disclose the dual agency to both parties.
3. Question: What is the role of a broker in a real estate transaction?
Correct Answer: The broker is the legal agent.
4. Question: Who is the customer in a real estate transaction?
Correct Answer: The customer is who you work with.
- Question: What should a salesperson do if a seller insists on the earnest money deposit
- Question: What is the responsibility of a second agent who takes over a listing with a
- Question: What must a salesperson disclose to a buyer when showing a property they
- Question: What term is used for the seller when a salesperson takes a listing on a
being paid directly to them?Correct Answer: The salesperson must inform the buyer of the seller's mortgage default.
known defect?Correct Answer: By law, they have the same responsibility regarding the defect as the listing agent.
have listed?Correct Answer: The salesperson must disclose to the buyer that they represent the seller.
property?
Correct Answer: Principal.
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- Question: What is the duty of a salesperson when representing two different buyers?
- Question: What must a salesperson disclose if a buyer is treated as a customer?
Correct Answer: There is no conflict of interest in showing two different buyers the same properties.
Correct Answer: The salesperson must disclose this information to the seller/client.
11. Question: What is a subagent in real estate?
Correct Answer: A salesperson is a subagent of the broker.
- Question: What form should parties sign for possible representation of more than one
buyer or seller?
Correct Answer: CAR Form - POSSIBLE REPRESENTATION OF MORE THAN ONE BUYER
OR SELLER - DISCLOSURE AND CONSENT.
13. Question: What happens if a buyer decides to rent instead of buy?
Correct Answer: The salesperson can show the homes without regard to the previous buyer/client.
14. Question: What is the relationship between a client and a customer?
Correct Answer: The client is who you work for; the customer is who you work with.
- Question: What must a salesperson do if they represent both the buyer and seller?
Correct Answer: They must disclose to both parties that they are acting as a dual agent.
16. Question: What is the consequence of not disclosing a defect in a property?
Correct Answer: The agent may be held liable for not disclosing known defects.
17. Question: What is the primary duty of a salesperson to their client?
Correct Answer: To disclose all relevant information.
18. Question: What is the implication of a buyer being treated as a customer?
Correct Answer: Information shared by the buyer is not confidential.
- Question: What must be done if a buyer is pre-approved for a higher amount than their
offer?Correct Answer: The salesperson must disclose this information to the seller/client.
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- Question: What is the responsibility of a salesperson if they know of a defect?
Correct Answer: They must disclose the defect regardless of who is representing the seller.
21. Question: What is the role of the salesperson in a listing agreement?
Correct Answer: The salesperson acts as a subagent of the broker.
22. Question: What should a salesperson do if they take over a listing?
Correct Answer: They are presumed to know all defects that the first agent knew.
- Question: What does a salesperson need to do when showing a property they have
listed?
Correct Answer: They must disclose that they represent the seller.
24. Question: What is the legal status of all listings in real estate?
Correct Answer: All listings belong to the broker.
25. Question: What is the importance of the initial consultation with a buyer?
Correct Answer: It establishes the relationship and disclosure obligations.
26. Question: What must a salesperson do if a buyer wants to make an offer?
Correct Answer: They must ensure that the buyer's financial information is handled according to disclosure laws.
- Question: What is the fiduciary responsibility of confidentiality to the buyer?
Correct Answer: It is a duty that must be observed.
- Question: What must a salesperson do if the seller insists on the earnest money
deposit check being paid directly to them?Correct Answer: The salesperson has a duty to observe the fiduciary responsibility of confidentiality to the buyer.
29. Question: What is required when multiple offers are received on a property?
Correct Answer: You must present all bona fide offers, no exceptions.
- Question: What must a salesperson do if they discover a significant crack in the
foundation while showing a property?Correct Answer: The agent must disclose this defect directly to the buyers or their agent.
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- Question: According to California Law, who represents the buyer in a real estate
- Question: What is the position of trust assumed by the broker as an agent for a
transaction?Correct Answer: There is no presumption that a broker or agent represents anyone until a listing or buyer brokerage contract is signed.
principal called?
Correct Answer: A fiduciary relationship.
33. Question: What is a principal in a real estate transaction?
Correct Answer: The main party to the transaction, either the seller (Grantor) or buyer (Grantee).
34. Question: What is an agent (broker) in real estate?
Correct Answer: A person authorized by another person (principal/client) to act on her behalf.
35. Question: What is a customer/third party in real estate?
Correct Answer: A non-represented consumer entitled to fairness and honesty.
- Question: What form do most contracts between a seller and broker for selling real
estate take?
Correct Answer: A written agreement.
37. Question: What is expressed agency?
Correct Answer: It is created when principal and broker express agreed upon terms and conditions in writing.
38. Question: What happens to confidentiality after the death of the client?
Correct Answer: Confidentiality lasts forever and survives the termination of the contract.
- Question: What must an agent do if subpoenaed regarding confidential information?
Correct Answer: The agent must disclose the confidential information.
40. Question: What is vicarious liability in the context of agency?
Correct Answer: The principal can be held responsible for the agent's actions that occur within the scope of the agency relationship.
