#1. Under California Civil Code §2079.14, when must a listing agent provide the agency disclosure form in a residential transaction involving 1-4 units?
#2. Which fiduciary duty requires an agent to act in the principal’s best interest above all others, including the agent’s own interests?
#3. A seller’s agent learns that the buyer has been pre-approved for $50,000 more than their offer price. Under agency law, what should the agent do?
#4. Under California law, a dual agent representing both buyer and seller in the same transaction must do which of the following?
#5. The acronym OLD CAR represents the fiduciary duties an agent owes to their principal. What does the ‘D’ stand for?
#6. Agent Maria represents Seller Jones under an exclusive listing. Buyer Chen contacts Maria directly to make an offer. If Maria agrees to also represent Chen, what type of agency is created?
#7. In a designated agency arrangement, what role does the broker play?
#8. A buyer’s agent discovers that the property is located within 1 mile of a former military ordnance disposal site. Under fiduciary duties, the agent must:
#9. Which of the following actions would constitute a breach of the fiduciary duty of obedience?
#10. Under California law, agency relationships can be created by all of the following EXCEPT:
#11. A listing agent fails to disclose a known foundation crack to a prospective buyer. Which fiduciary duty has been violated?
#12. What is the primary difference between a single agency and a dual agency?
#13. Under California Civil Code §2079.16, which document must accompany the agency disclosure form?
#14. Agent Thompson represents the buyer. During negotiations, the seller’s agent mentions that the seller is getting divorced and is desperate to sell quickly. What should Agent Thompson do with this information?
#15. Which of the following is TRUE regarding subagency in California residential transactions?
#16. A broker allows two agents in the same brokerage to represent opposite sides of a transaction. Each agent advocates for their respective client. This arrangement is called:
#17. The fiduciary duty of ‘Accounting’ requires an agent to:
#18. Under California law, when does an agency relationship with a listing agent typically terminate?
#19. A seller instructs their agent to withhold information about a death that occurred on the property 2 years ago. The agent should:
#20. Which type of listing agreement gives the broker the exclusive right to a commission regardless of who finds the buyer?
#21. In California, commissions for real estate transactions are:
#22. Agent Roberts discovers that a neighboring property is planning a major construction project that will significantly impact the listed property. Under the duty of care, Agent Roberts must:
#23. Which of the following scenarios would create an implied agency relationship?
#24. Under California’s agency disclosure requirements, a selling agent (buyer’s agent) must provide the disclosure form to the buyer no later than:
#25. An agent who represents only the buyer and owes no duties to the seller is operating under which type of agency?
#26. Which statement about the fiduciary duty of confidentiality is CORRECT?
#27. A real estate broker charges different commission rates to different clients based on the complexity of the transaction. Is this practice legal in California?
#28. Under California agency law, which of the following is considered a material fact that MUST be disclosed?
#29. A buyer’s agent receives a bonus from the seller for bringing a quick offer. The agent must:
#30. The ‘Care’ component of the OLD CAR fiduciary duties requires an agent to:
#31. In California, which party in a real estate transaction typically pays the buyer’s agent commission?
#32. An agent represents a seller and learns that the buyer plans to convert the residential property to a commercial use that violates zoning. The agent should:
#33. Which of the following would NOT terminate an agency relationship?
#34. Under California law, a real estate agent who acts outside the scope of their authority may expose which party to liability?
#35. The duty of ‘Reasonable Care and Diligence’ requires a listing agent to:
#36. Which statement about agency disclosure in California is FALSE?
#37. A listing agent discovers that a prospective buyer intends to use the property for illegal drug manufacturing. Under fiduciary duties, the agent must:
#38. Under California Civil Code §1102.6c, which of the following is TRUE regarding agent visual inspections?
#39. In a dual agency situation, the agent CANNOT:
#40. When an agent’s conduct leads a third party to reasonably believe the agent has authority to act on behalf of a principal, this creates:
#41. A seller’s agent learns that a competing property just listed at a much lower price. The duty of disclosure requires the agent to:
#42. Under California law, which of the following compensation arrangements is legal but must be carefully disclosed?
#43. Which of the following is NOT a method of creating an agency relationship in California?
#44. A buyer’s agent discovers that the seller recently declined an offer $20,000 higher than the buyer’s planned offer. The agent should:
#45. Under the fiduciary duty of loyalty, an agent may NOT:
#46. In California, a buyer’s agent who also holds a contractor’s license discovers building code violations during a showing. The agent must:
#47. Which of the following statements about an exclusive agency listing is TRUE?
#48. A listing agent receives two offers simultaneously. Under the fiduciary duty of obedience, the agent must:
#49. Under California agency law, an agent’s duty to disclose material facts extends to:
#50. A seller instructs their listing agent to accept only offers from buyers of a specific ethnicity. The agent should:
#51. The California Civil Code requires that agency disclosure forms identify the agent as representing which of the following?
#52. Which of the following best describes the difference between a general agent and a special agent in real estate?
#53. Under California law, when must the agency disclosure confirmation occur in a real estate transaction?
#54. An agent’s broker instructs the agent to not disclose a known material defect to buyers. The agent should:
#55. Which of the following situations would most likely result in an agency by estoppel?
#56. In California, the duty of a buyer’s agent to inspect the property applies to:
#57. A dual agent in California may NOT do which of the following without express written permission?
#58. Under California agency law, the broker-salesperson relationship is BEST described as:
#59. Agent Lee shows a buyer 10 properties over several weeks without a written buyer representation agreement. Which of the following is TRUE?
#60. Which fiduciary duty is violated when an agent uses their position to benefit personally at the expense of the client?
#61. Under California Civil Code §2079.13, the term ‘listing agent’ is defined as:
#62. A seller’s agent learns that the property’s foundation was repaired 5 years ago. The buyer does not ask about foundation issues. The agent must:
#63. Under California law, which of the following is required for a valid exclusive listing agreement?
#64. An agent who provides market analysis, negotiates on behalf of a party, and drafts offer terms for a buyer without a written agreement has likely created:
#65. What happens to the fiduciary duty of confidentiality after the agency relationship terminates?
#66. A listing broker offers a cooperating commission to a buyer’s broker through the MLS. This creates:
#67. In California, the agency confirmation statement on the purchase agreement must be signed by:
#68. Which of the following would be considered a breach of the fiduciary duty of accounting?
#69. Under California law, an agent representing the seller discovers that the buyer’s earnest money check may be fraudulent. The agent should:
#70. Which of the following activities requires a real estate license in California?
#71. A buyer’s agent discovers that the property has a serious mold issue not disclosed by the seller. The agent’s duty of care requires:
#72. An open listing differs from an exclusive listing in that:
#73. The California Bureau of Real Estate (formerly DRE) can take disciplinary action against an agent for violating agency duties. Possible penalties include:
#74. Under the duty of disclosure, a listing agent who suspects but is not certain that the property contains asbestos should:
#75. In California, which of the following creates an agency relationship between a buyer and a buyer’s agent?
#76. A listing agent’s duty to conduct a visual inspection of the property under Civil Code §2079 includes:
#77. Which of the following is TRUE about agent compensation in California?
#78. Under California law, a power of attorney that authorizes a person to handle all of a principal’s real estate affairs creates what type of agency?
#79. A dual agent presents an offer from the buyer to the seller. The seller asks the dual agent, ‘Should I accept this offer?’ The dual agent should:
#80. An agent fails to present an offer to the seller because the agent believes the offer is too low. This violates which fiduciary duty?
#81. Under California agency law, which disclosure is specifically required when an agent has a personal interest in the transaction?
#82. Which of the following correctly describes the concept of vicarious liability in real estate agency?
#83. A salesperson switches brokerages. What happens to the salesperson’s existing listings?
#84. Under California law, which of the following is NOT a duty owed by an agent to third parties (non-clients)?
#85. A buyer’s agent negotiates a purchase price that is $30,000 below market value. The agent then arranges to purchase the property from the buyer at market value the next month. This practice is:
#86. The agency disclosure form in California must be provided by the listing agent to the seller at what point?
#87. In California, an agent who acts as a transaction broker (facilitator) without representing either party:
#88. Which scenario best illustrates a breach of the fiduciary duty of confidentiality?
#89. Under California’s agency laws, which of the following may a dual agent disclose to the buyer?
#90. A listing agent is approached by a buyer who wants to submit an offer but does not have an agent. The listing agent may:
#91. What distinguishes an agency by ratification from other forms of agency creation?
#92. Under California Civil Code §2079.17, the agency confirmation must be included in:
#93. A buyer’s agent discovers that the seller has multiple liens totaling more than the property’s value. Under the duty of care, the agent should:
#94. Which of the following actions by a listing agent could constitute an unauthorized dual agency?
#95. Under California law, an agent’s obligation to disclose material facts applies to:
#96. In California, a broker’s responsibility for supervising agents includes:
#97. A listing agent promises a seller that the property will sell within 30 days at the listed price. This statement:
#98. Under California law, which of the following is TRUE about the relationship between a salesperson and multiple brokers?
#99. A buyer’s agent discovers that the seller failed to disclose a known neighborhood nuisance (loud industrial noise). The buyer’s agent must:
#100. An agent representing a buyer writes an offer that includes a term the buyer did not authorize. This is a breach of which duty?
#101. Under California Civil Code §1710.2, a seller or seller’s agent must disclose a death on the property if it occurred within:
#102. Which of the following is TRUE regarding an agent’s duty to inspect property under California law?
#103. A real estate agent attending an open house for another agent’s listing begins discussing representation with a visitor. When does agency potentially begin?
#104. Under California’s agency confirmation requirements, which document must confirm the agency relationship before or at the time the purchase agreement is executed?
#105. A listing agent discovers after executing the listing that they have a distant family relationship with a potential buyer. The agent must:
#106. Which statement about gratuitous agency in California real estate is TRUE?
#107. Under California law, what is the maximum number of salespersons a broker may supervise?
#108. A buyer’s agent discovers that the property was previously used as a methamphetamine lab but has been certified as remediated. The agent should:
#109. In California, the principal in an agency relationship has the right to:
#110. Under the fiduciary duty of accounting, an agent who receives a security deposit for a rental must:
#111. An agent recommends a specific lender to a buyer and receives a referral fee from the lender. Under California agency law, the agent must:
#112. Which of the following BEST describes an exclusive agency listing?
#113. Under California law, an agent who fails to conduct a required visual inspection of the property may be liable for:
#114. A listing agent for a property in a flood zone verifies this information through the NHD report. If the agent then tells a buyer ‘I don’t think flooding is really an issue here,’ the agent may be liable for:
#115. Which of the following is TRUE about agency relationships in California commercial real estate?
#116. Under California agency law, a seller’s agent who learns that the property’s actual square footage is significantly less than what is advertised must:
#117. A real estate agent provides a buyer with a list of three home inspectors to choose from. Under the duty of care, this is:
#118. In California, when an agent’s authority is limited to finding a buyer for a specific property, the agent is classified as a:
#119. A listing agent discovers that the property’s permit for a room addition was never finalized. This is a:
#120. Under California Civil Code §2079.14, the agency disclosure form must be provided by a selling agent to the buyer before:
#121. Which of the following is NOT a fiduciary duty owed by an agent to a principal under California law?
#122. A buyer’s agent learns that the neighboring property has filed for a zoning variance that could allow a commercial use next door. The agent should:
#123. Under California law, what is the legal consequence if an agent acts as a dual agent without proper disclosure and written consent?
#124. A listing agent includes a clause in the listing agreement giving the agent the authority to accept offers on behalf of the seller without further consultation. Is this permissible?
#125. An agent’s responsibility for diligent investigation includes researching which of the following about a listed property?
#126. Under California law, a salesperson’s license is automatically what when the employing broker’s license is revoked?
#127. A buyer’s agent learns that the seller’s agent is also the seller’s spouse but this relationship is not disclosed. This lack of disclosure violates:
#128. Which of the following is a valid reason for an agent to breach confidentiality?
#129. Under California law, the employing broker is ultimately responsible for ensuring:
#130. A listing agent discovers that the property has an easement that significantly limits use of the backyard. The agent must:
#131. In California, the concept of ‘ratification’ in agency law means:
#132. Which of the following must be included in the agency confirmation section of a California purchase agreement?
#133. An agent representing a seller discovers the buyer is a close personal friend of the agent’s broker. The agent should:
#134. Under California agency law, which of the following activities does NOT require a real estate license?
#135. A seller’s agent who fails to disclose a known neighborhood issue, such as a registered sex offender living nearby, may face:
#136. In California, which of the following types of agency offers the LEAST protection to the client?
#137. Under California law, the agency relationship between a buyer and their agent typically terminates:
#138. A listing agent who collects earnest money from a buyer must deposit the funds:
#139. Which of the following scenarios would NOT create an agency relationship?
#140. Under the fiduciary duty of loyalty, a listing agent who learns that a neighboring commercial development will significantly increase the property’s value should:
#141. California Civil Code §2079.24 establishes that agency duties owed to the principal include:
#142. An agent’s failure to explain the significance of a ‘time is of the essence’ clause in a purchase agreement to their client most likely breaches which fiduciary duty?
#143. A real estate agent who personally guarantees a loan for a buyer client without disclosing this arrangement to the seller is violating the duty of:
#144. Under California law, if a salesperson’s employing broker dies, the salesperson:
#145. Which of the following scenarios illustrates a listing agent’s proper response when a property defect is discovered mid-transaction?
#146. Under the agency law concept of respondeat superior, which party bears responsibility for an agent’s negligent acts within the scope of employment?
#147. A buyer’s agent negotiates a price reduction for the buyer. Without disclosure, the agent then receives a bonus directly from the seller for facilitating a quick close. This violates:
#148. Under California law, which of the following is NOT required for a valid listing agreement?
#149. In California, which statement about an agent’s duty to inspect is CORRECT?
#150. A listing agent who conceals a dual agency relationship to earn commissions from both parties may face:
#151. Under California law, an agency relationship may be terminated by all of the following EXCEPT:
#152. A buyer’s agent who represents a buyer in purchasing a property and simultaneously has an ownership interest in a competing property must:
#153. Under California Civil Code §2079, the visual inspection duty of a listing agent requires the agent to:
#154. An agent accidentally provides incorrect comparable sales data that leads to a property being underpriced by $40,000. This is a potential breach of the duty of:
#155. In California, the requirement that listing agreements contain a definite termination date protects:
#156. A seller’s agent who is also a licensed appraiser appraises the property they are listing $100,000 above comparable sales to secure the listing. This violates:
#157. Under California law, which of the following is TRUE about a net listing?
#158. A listing agent receives an anonymous tip that a buyer may be using fraudulent documents to qualify for a loan. The agent should:
#159. Which of the following is the primary purpose of California’s agency disclosure requirements?
#160. Under California law, an agent who reveals a client’s HIV status to potential buyers is:
#161. A listing agent’s duty of loyalty prevents the agent from doing which of the following?
#162. Under the duty of full disclosure, a listing agent who is aware that the property may have soil contamination from a former gas station on an adjacent lot must:
#163. Which of the following creates the strongest obligation for a broker to pay a commission to a cooperating broker?
#164. In California, an agent who acts without any authority from the principal is known as:
#165. Under California agency law, which of the following is TRUE about the agent’s duty of disclosure regarding environmental hazards?
#166. A dual agent accidentally forwards an email from the seller to the buyer that reveals the seller’s bottom-line price. The dual agent has:
#167. Under California law, which of the following is a characteristic of agency by estoppel?
#168. A buyer’s agent who fails to investigate whether a property is in a designated flood zone, and the buyer later suffers flood damage, may be liable for:
#169. In California, the fiduciary relationship between agent and principal is described as one of:
#170. A listing agent discovers mid-listing that the property encroaches 6 inches onto the neighbor’s property. The agent must:
#171. Under California law, which of the following would NOT be considered a breach of an agent’s fiduciary duties?
#172. Which of the following scenarios BEST illustrates the concept of ‘apparent authority’ in real estate?
#173. A listing agent receives a verbal offer from a buyer’s agent. Under California agency law, the listing agent must:
#174. Under California law, an agent who helps a buyer purchase a property owned by the agent’s family member without disclosure has violated the duty of:
#175. Which of the following scenarios would require a seller’s agent to provide the agency disclosure form to the buyer?
#176. Under California agency law, the term ‘fiduciary’ is BEST defined as:
#177. A listing agent learns that the city is planning to build a new highway adjacent to the listed property. Under the duty of disclosure, the agent should:
#178. Under California law, which of the following types of agents has the broadest scope of authority?
#179. A buyer’s agent receives a gift worth $2,000 from a title company for referring clients. The agent must:
#180. Under California’s agency confirmation requirements, which statement is CORRECT?
#181. A seller’s agent who learns that the buyer has been turned down by two lenders should:
#182. In California, when an agent’s listing agreement is an exclusive right-to-sell and the owner finds a buyer on their own, what happens to the commission?
#183. Under California law, which of the following actions constitutes commingling in the context of agency?
#184. A buyer’s agent discovers that the seller completed a major renovation without proper permits. This information is:
#185. Under California agency law, which duty protects against an agent secretly purchasing the listed property through a third party?
#186. A dual agent receives a home inspection report revealing significant structural defects. The dual agent must:
#187. In California, the primary legal document that establishes the agency relationship between a seller and a listing agent is:
#188. Under California law, which of the following is NOT grounds for revoking a real estate license related to agency duties?
#189. A listing agent’s fiduciary duty of reasonable care includes which of the following obligations?
#190. Under California law, an agent who discovers after listing that the property was the site of a homicide 2 years ago must:
#191. Which of the following is TRUE about the termination of an agency by operation of law?
#192. A listing agent who provides a buyer with a seller’s net sheet showing the seller’s minimum acceptable price has violated:
#193. Under California law, what is the consequence if an agent fails to provide the required agency disclosure form?
#194. A buyer asks their agent to include a contingency that the agent believes is unreasonable. Under the duty of obedience, the agent should:
#195. Under California law, which of the following would create an agency coupled with an interest?
#196. A real estate agent providing a Broker Price Opinion (BPO) to a client owes which level of duty?
#197. Under California law, which of the following situations does NOT require agency disclosure?
#198. A buyer’s agent who encourages a buyer to waive the inspection contingency without explaining the risks may have breached:
#199. In California, the agency relationship between a buyer and their agent is MOST commonly established by:
#200. Under California Civil Code §2079.13-2079.24, which of the following is a required element of the agency disclosure?
