ACEABLE AGENT REAL ESTATE LICENSING COMPLETE AND CURRENT
VERSION OF THE EXAM WITH ALL QUESTIONS AND ANSWERS PROVIDED
IN THEIR MOST ACCURATE FORM
1. Q: What is agency? ANSWER A fiduciary relationship where an agent
is authorized to act on behalf of a principal in dealings with third parties.
2. Q: What are the three types of agency relationships? ANSWER
Seller's agent (listing agent), buyer's agent, and dual agency.
3. Q: What does fiduciary duty mean? ANSWER The highest standard
of care where an agent must act in the best interest of their principal.
4. Q: What are the fiduciary duties? (OLD CAR) ANSWER Obedience,
Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care.
5. Q: What is obedience in fiduciary duty? ANSWER Following all
lawful instructions from the principal.
6. Q: What is loyalty in fiduciary duty? ANSWER Putting the
principal's interests above all others, including the agent's own.
7. Q: What is disclosure in fiduciary duty? ANSWER Keeping the
principal informed of all material facts.
8. Q: What is confidentiality in fiduciary duty? ANSWER Keeping the
principal's confidential information private.
9. Q: What is accounting in fiduciary duty? ANSWER Properly
handling and accounting for all money and property belonging to the
principal.
10.Q: What is reasonable care in fiduciary duty? ANSWER Using skill,
care, and diligence in performing duties.
11.Q: What is express agency? ANSWER Agency relationship created
through written or oral agreement.
12.Q: What is implied agency? ANSWER Agency created through
actions and conduct rather than formal agreement.
,13.Q: What is ratification? ANSWER When a principal approves an
agent's unauthorized act after it occurs.
14.Q: What is estoppel? ANSWER When a principal's actions lead a third
party to believe an agency exists.
15.Q: What is a listing agreement? ANSWER A contract between a seller
and broker authorizing the broker to find a buyer.
16.Q: What is an exclusive right to sell listing? ANSWER The listing
broker earns commission regardless of who sells the property.
17.Q: What is an exclusive agency listing? ANSWER The broker earns
commission unless the owner sells the property themselves.
18.Q: What is an open listing? ANSWER Multiple brokers can list the
property; only the one who brings the buyer earns commission.
19.Q: What is net listing? ANSWER The seller receives a set amount; the
broker keeps anything above that as commission. (Illegal in many states)
20.Q: What is dual agency? ANSWER When one agent represents both
buyer and seller in the same transaction.
21.Q: What is designated agency? ANSWER When a brokerage assigns
different agents to represent buyer and seller in the same transaction.
22.Q: What is subagency? ANSWER When a cooperating broker
represents the listing broker's client (less common today).
23.Q: What is a buyer's agent? ANSWER An agent who represents the
buyer's interests in a transaction.
24.Q: What is a transaction broker? ANSWER A neutral party who
assists both buyer and seller without representing either.
25.Q: What is material fact? ANSWER Information that could affect a
party's decision to enter into a contract or the terms.
26.Q: What must be disclosed to all parties? ANSWER All material
facts about the property and transaction.
27.Q: What is puffing? ANSWER Exaggerated statements of opinion not
made as representations of fact.
28.Q: What is misrepresentation? ANSWER Making a false statement of
material fact.
, 29.Q: What is fraud? ANSWER Intentional misrepresentation or
concealment of material facts.
30.Q: What is negligent misrepresentation? ANSWER Unintentional
misrepresentation due to lack of reasonable care.
31.Q: When does agency relationship terminate? ANSWER By
expiration, completion, mutual agreement, revocation, renunciation,
death, or bankruptcy.
32.Q: What is procuring cause? ANSWER The agent whose efforts
resulted in the sale.
33.Q: What is ready, willing, and able buyer? ANSWER A buyer who is
prepared to buy, wants to buy, and is financially capable.
34.Q: What is commingling? ANSWER Illegally mixing client funds with
personal or business funds.
35.Q: What is conversion? ANSWER Illegally using client funds for
personal use.
36.Q: What is a trust account? ANSWER A separate account where
client funds must be deposited.
37.Q: When is commission typically earned? ANSWER When a ready,
willing, and able buyer is procured (but usually paid at closing).
38.Q: Can a seller cancel a listing agreement? ANSWER Yes, but may
owe commission or damages depending on the agreement.
39.Q: What is cooperating broker? ANSWER A broker who works with
the listing broker to sell a property.
40.Q: What is procuring broker? ANSWER The broker who finds the
buyer for a property.
Property Ownership and Interests (Questions 41-80)
41.Q: What is real property? ANSWER Land and anything permanently
attached to it.
42.Q: What is personal property? ANSWER Movable items not
permanently attached to real estate.
43.Q: What are fixtures? ANSWER Personal property that has become
permanently attached to real property.
VERSION OF THE EXAM WITH ALL QUESTIONS AND ANSWERS PROVIDED
IN THEIR MOST ACCURATE FORM
1. Q: What is agency? ANSWER A fiduciary relationship where an agent
is authorized to act on behalf of a principal in dealings with third parties.
2. Q: What are the three types of agency relationships? ANSWER
Seller's agent (listing agent), buyer's agent, and dual agency.
3. Q: What does fiduciary duty mean? ANSWER The highest standard
of care where an agent must act in the best interest of their principal.
4. Q: What are the fiduciary duties? (OLD CAR) ANSWER Obedience,
Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care.
5. Q: What is obedience in fiduciary duty? ANSWER Following all
lawful instructions from the principal.
6. Q: What is loyalty in fiduciary duty? ANSWER Putting the
principal's interests above all others, including the agent's own.
7. Q: What is disclosure in fiduciary duty? ANSWER Keeping the
principal informed of all material facts.
8. Q: What is confidentiality in fiduciary duty? ANSWER Keeping the
principal's confidential information private.
9. Q: What is accounting in fiduciary duty? ANSWER Properly
handling and accounting for all money and property belonging to the
principal.
10.Q: What is reasonable care in fiduciary duty? ANSWER Using skill,
care, and diligence in performing duties.
11.Q: What is express agency? ANSWER Agency relationship created
through written or oral agreement.
12.Q: What is implied agency? ANSWER Agency created through
actions and conduct rather than formal agreement.
,13.Q: What is ratification? ANSWER When a principal approves an
agent's unauthorized act after it occurs.
14.Q: What is estoppel? ANSWER When a principal's actions lead a third
party to believe an agency exists.
15.Q: What is a listing agreement? ANSWER A contract between a seller
and broker authorizing the broker to find a buyer.
16.Q: What is an exclusive right to sell listing? ANSWER The listing
broker earns commission regardless of who sells the property.
17.Q: What is an exclusive agency listing? ANSWER The broker earns
commission unless the owner sells the property themselves.
18.Q: What is an open listing? ANSWER Multiple brokers can list the
property; only the one who brings the buyer earns commission.
19.Q: What is net listing? ANSWER The seller receives a set amount; the
broker keeps anything above that as commission. (Illegal in many states)
20.Q: What is dual agency? ANSWER When one agent represents both
buyer and seller in the same transaction.
21.Q: What is designated agency? ANSWER When a brokerage assigns
different agents to represent buyer and seller in the same transaction.
22.Q: What is subagency? ANSWER When a cooperating broker
represents the listing broker's client (less common today).
23.Q: What is a buyer's agent? ANSWER An agent who represents the
buyer's interests in a transaction.
24.Q: What is a transaction broker? ANSWER A neutral party who
assists both buyer and seller without representing either.
25.Q: What is material fact? ANSWER Information that could affect a
party's decision to enter into a contract or the terms.
26.Q: What must be disclosed to all parties? ANSWER All material
facts about the property and transaction.
27.Q: What is puffing? ANSWER Exaggerated statements of opinion not
made as representations of fact.
28.Q: What is misrepresentation? ANSWER Making a false statement of
material fact.
, 29.Q: What is fraud? ANSWER Intentional misrepresentation or
concealment of material facts.
30.Q: What is negligent misrepresentation? ANSWER Unintentional
misrepresentation due to lack of reasonable care.
31.Q: When does agency relationship terminate? ANSWER By
expiration, completion, mutual agreement, revocation, renunciation,
death, or bankruptcy.
32.Q: What is procuring cause? ANSWER The agent whose efforts
resulted in the sale.
33.Q: What is ready, willing, and able buyer? ANSWER A buyer who is
prepared to buy, wants to buy, and is financially capable.
34.Q: What is commingling? ANSWER Illegally mixing client funds with
personal or business funds.
35.Q: What is conversion? ANSWER Illegally using client funds for
personal use.
36.Q: What is a trust account? ANSWER A separate account where
client funds must be deposited.
37.Q: When is commission typically earned? ANSWER When a ready,
willing, and able buyer is procured (but usually paid at closing).
38.Q: Can a seller cancel a listing agreement? ANSWER Yes, but may
owe commission or damages depending on the agreement.
39.Q: What is cooperating broker? ANSWER A broker who works with
the listing broker to sell a property.
40.Q: What is procuring broker? ANSWER The broker who finds the
buyer for a property.
Property Ownership and Interests (Questions 41-80)
41.Q: What is real property? ANSWER Land and anything permanently
attached to it.
42.Q: What is personal property? ANSWER Movable items not
permanently attached to real estate.
43.Q: What are fixtures? ANSWER Personal property that has become
permanently attached to real property.
