NAF EXAMS BUNDLE FINAL REVIEW 2026
QUESTIONS WITH SOLUTIONS GRADED
A+
>> Agency
Answer: A legally binding, fiduciary relationship between an agent and client for the purpose of buying
or selling real property for a set price and within a set time period
>> Agency (broker)
Answer: The authority to act in place of a principle to do a specified act for a state commission, and
within a stated period of time
>> Agent (broker)
Answer: One who acts for end with authority from the principal to represent the principal and dealing
with third parties
>> Principal (client)
Answer: A person who hires and authorizes a trusted agent to work for him or her
>> Third Party (customer)
Answer: A person in a contractual negotiation, other than the principal or agent
>> Fiduciary
Answer: A person acting in a position of trust and confidence in a business relationship
>> Material Facts
Answer: Facts that are so important that failure to disclose them may affect financial decisions of the
parties to the transaction
>> Express or written agency
Answer: Created by the contract of the principle which completely and precisely delineates those
activities which the agent is authorized to undertake
>> Implied Authority
Answer: The authority that a third person reasonably believes an agent possesses because of the acts
or omissions of the principal
>> Estoppel
Answer: Prohibits the principal from denying that a person is his or her agent if the principal has misled
another to his prejudice into believing that person is the agent
QUESTIONS WITH SOLUTIONS GRADED
A+
>> Agency
Answer: A legally binding, fiduciary relationship between an agent and client for the purpose of buying
or selling real property for a set price and within a set time period
>> Agency (broker)
Answer: The authority to act in place of a principle to do a specified act for a state commission, and
within a stated period of time
>> Agent (broker)
Answer: One who acts for end with authority from the principal to represent the principal and dealing
with third parties
>> Principal (client)
Answer: A person who hires and authorizes a trusted agent to work for him or her
>> Third Party (customer)
Answer: A person in a contractual negotiation, other than the principal or agent
>> Fiduciary
Answer: A person acting in a position of trust and confidence in a business relationship
>> Material Facts
Answer: Facts that are so important that failure to disclose them may affect financial decisions of the
parties to the transaction
>> Express or written agency
Answer: Created by the contract of the principle which completely and precisely delineates those
activities which the agent is authorized to undertake
>> Implied Authority
Answer: The authority that a third person reasonably believes an agent possesses because of the acts
or omissions of the principal
>> Estoppel
Answer: Prohibits the principal from denying that a person is his or her agent if the principal has misled
another to his prejudice into believing that person is the agent
