ABR - ACCREDITED BUYER'S REPRESENTATIVE EXAM READY -
VERIFIED QUESTIONS AND ANSWERS - COMPREHENSIVE
LATEST VERSION
Accredited Buyer's Representative (ABR)
1. What was the traditional role of real estate agents before buyer
representation became common?
Agents traditionally represented only the seller, and all agents in a transaction
worked as subagents of the listing broker, with no fiduciary duty to the buyer.
2. What court case is often credited with changing the landscape of buyer
representation?
Varvaro v. Pero (New York, 1984) and similar cases highlighted that traditional
subagency did not protect buyer interests, accelerating the need for buyer
agency.
3. When did buyer representation begin to gain widespread legal recognition
in the U.S.?
Primarily during the 1980s and 1990s, as state legislatures and real estate
commissions began authorizing buyer agency by statute.
4. What is subagency?
Subagency occurs when a broker allows another broker (or salesperson) to
represent the seller under the authority of the listing broker. The subagent
owes fiduciary duties to the seller, not the buyer.
,5. Why is subagency considered risky for buyers?
Because the subagent owes undivided loyalty, confidentiality, and full
disclosure to the seller—meaning they cannot advocate for the buyer's best
interests.
6. What is the primary purpose of buyer representation?
To provide buyers with a dedicated advocate who owes them fiduciary duties,
including loyalty, confidentiality, disclosure, obedience, accounting, and
reasonable care.
7. What is a "facilitator" or "transaction broker"?
A facilitator assists both parties in a transaction without representing either
party's interests, providing limited or no fiduciary duties.
8. How does buyer representation benefit the real estate industry as a
whole?
It increases professionalism, reduces liability, clarifies agency roles, and
ensures buyers receive skilled advocacy in complex transactions.
9. What is REBAC?
The Real Estate Buyer's Agent Council, founded in 1988, is the organization
that established and oversees the ABR® designation.
10. What is the ABR® designation?
A professional certification awarded by REBAC (affiliated with NAR) to real
estate practitioners who complete specialized education in buyer
representation and demonstrate practical experience.
11. How many transactions must an agent complete to earn the ABR®
designation?
Five transactions in which the agent acted solely as a buyer's representative
(no dual agency), within three years before or after completing the core
course.
12. What is the passing score for the ABR® online course exam?
80% or better.
13. How many elective courses are required for the ABR® designation?
,One qualifying elective course.
14. What is the main difference between a customer and a client in real
estate?
A customer receives honesty and fair dealing; a client receives full fiduciary
duties and advocacy.
15. Why did NAR amend its Code of Ethics to address buyer agency?
To ensure that REALTORS® disclosed their agency relationships and treated all
parties honestly, while clearly defining duties to buyer-clients.
16. What is "procuring cause" and why is it relevant to buyer representation?
Procuring cause refers to the uninterrupted chain of events leading to a sale. In
buyer representation, it helps determine commission entitlement when
disputes arise.
17. What trend has increased the importance of buyer representation in
recent years?
The rise of internet-savvy buyers, increased market complexity, and changes to
cooperative compensation structures.
18. What is an "exclusive buyer representation" model?
A brokerage that only represents buyers and never takes listings, eliminating
potential conflicts of interest.
19. What is the difference between designated agency and dual agency?
Designated agency assigns different licensees within the same firm to
represent each party individually; dual agency has one licensee or the firm
representing both parties with limited duties.
20. Why is written disclosure of agency relationships now required in most
states?
To ensure consumers understand who represents whom, reducing confusion,
lawsuits, and regulatory complaints.
SECTION 2: AGENCY RELATIONSHIPS & LAW (Questions 21–50)
21. What are the six common law fiduciary duties owed to a client?
, Obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care
(OLD CAR).
22. What does the duty of loyalty require?
The agent must put the client's interests above all others, including their own,
and avoid conflicts of interest.
23. What does the duty of confidentiality require?
The agent must not disclose the client's private information without
permission, even after the relationship ends.
24. What does the duty of disclosure require?
The agent must disclose all material facts affecting the transaction and any
conflicts of interest.
25. What does the duty of obedience require?
The agent must follow lawful instructions of the client.
26. What does the duty of accounting require?
The agent must safeguard and properly account for all money, documents, and
property entrusted to them.
27. What does the duty of reasonable care require?
The agent must use their professional knowledge and skill to protect the
client's interests.
28. What is the difference between actual authority and apparent authority?
Actual authority is explicitly granted by the client; apparent authority is what a
third party reasonably believes the agent has based on the principal's
representations.
29. What is an agency relationship created by?
Express agreement (written or oral), implied agreement through conduct, or in
some cases, ratification or estoppel.
30. Why should buyer representation agreements be in writing?
To satisfy the Statute of Frauds, clarify terms, reduce disputes, and comply
with state laws and NAR policy.
VERIFIED QUESTIONS AND ANSWERS - COMPREHENSIVE
LATEST VERSION
Accredited Buyer's Representative (ABR)
1. What was the traditional role of real estate agents before buyer
representation became common?
Agents traditionally represented only the seller, and all agents in a transaction
worked as subagents of the listing broker, with no fiduciary duty to the buyer.
2. What court case is often credited with changing the landscape of buyer
representation?
Varvaro v. Pero (New York, 1984) and similar cases highlighted that traditional
subagency did not protect buyer interests, accelerating the need for buyer
agency.
3. When did buyer representation begin to gain widespread legal recognition
in the U.S.?
Primarily during the 1980s and 1990s, as state legislatures and real estate
commissions began authorizing buyer agency by statute.
4. What is subagency?
Subagency occurs when a broker allows another broker (or salesperson) to
represent the seller under the authority of the listing broker. The subagent
owes fiduciary duties to the seller, not the buyer.
,5. Why is subagency considered risky for buyers?
Because the subagent owes undivided loyalty, confidentiality, and full
disclosure to the seller—meaning they cannot advocate for the buyer's best
interests.
6. What is the primary purpose of buyer representation?
To provide buyers with a dedicated advocate who owes them fiduciary duties,
including loyalty, confidentiality, disclosure, obedience, accounting, and
reasonable care.
7. What is a "facilitator" or "transaction broker"?
A facilitator assists both parties in a transaction without representing either
party's interests, providing limited or no fiduciary duties.
8. How does buyer representation benefit the real estate industry as a
whole?
It increases professionalism, reduces liability, clarifies agency roles, and
ensures buyers receive skilled advocacy in complex transactions.
9. What is REBAC?
The Real Estate Buyer's Agent Council, founded in 1988, is the organization
that established and oversees the ABR® designation.
10. What is the ABR® designation?
A professional certification awarded by REBAC (affiliated with NAR) to real
estate practitioners who complete specialized education in buyer
representation and demonstrate practical experience.
11. How many transactions must an agent complete to earn the ABR®
designation?
Five transactions in which the agent acted solely as a buyer's representative
(no dual agency), within three years before or after completing the core
course.
12. What is the passing score for the ABR® online course exam?
80% or better.
13. How many elective courses are required for the ABR® designation?
,One qualifying elective course.
14. What is the main difference between a customer and a client in real
estate?
A customer receives honesty and fair dealing; a client receives full fiduciary
duties and advocacy.
15. Why did NAR amend its Code of Ethics to address buyer agency?
To ensure that REALTORS® disclosed their agency relationships and treated all
parties honestly, while clearly defining duties to buyer-clients.
16. What is "procuring cause" and why is it relevant to buyer representation?
Procuring cause refers to the uninterrupted chain of events leading to a sale. In
buyer representation, it helps determine commission entitlement when
disputes arise.
17. What trend has increased the importance of buyer representation in
recent years?
The rise of internet-savvy buyers, increased market complexity, and changes to
cooperative compensation structures.
18. What is an "exclusive buyer representation" model?
A brokerage that only represents buyers and never takes listings, eliminating
potential conflicts of interest.
19. What is the difference between designated agency and dual agency?
Designated agency assigns different licensees within the same firm to
represent each party individually; dual agency has one licensee or the firm
representing both parties with limited duties.
20. Why is written disclosure of agency relationships now required in most
states?
To ensure consumers understand who represents whom, reducing confusion,
lawsuits, and regulatory complaints.
SECTION 2: AGENCY RELATIONSHIPS & LAW (Questions 21–50)
21. What are the six common law fiduciary duties owed to a client?
, Obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care
(OLD CAR).
22. What does the duty of loyalty require?
The agent must put the client's interests above all others, including their own,
and avoid conflicts of interest.
23. What does the duty of confidentiality require?
The agent must not disclose the client's private information without
permission, even after the relationship ends.
24. What does the duty of disclosure require?
The agent must disclose all material facts affecting the transaction and any
conflicts of interest.
25. What does the duty of obedience require?
The agent must follow lawful instructions of the client.
26. What does the duty of accounting require?
The agent must safeguard and properly account for all money, documents, and
property entrusted to them.
27. What does the duty of reasonable care require?
The agent must use their professional knowledge and skill to protect the
client's interests.
28. What is the difference between actual authority and apparent authority?
Actual authority is explicitly granted by the client; apparent authority is what a
third party reasonably believes the agent has based on the principal's
representations.
29. What is an agency relationship created by?
Express agreement (written or oral), implied agreement through conduct, or in
some cases, ratification or estoppel.
30. Why should buyer representation agreements be in writing?
To satisfy the Statute of Frauds, clarify terms, reduce disputes, and comply
with state laws and NAR policy.
