CA REAL ESTATE EXAM PT. 2 EXAM
2024/2025
An agency relationship creates a fiduciary relationship between principal
and agent. Which of the following relationships illustrates a fiduciary
relationship?
(A) Real estate broker to his/her client
(B) Trustee to a beneficiary
(C) Both A and B
(D) Neither A nor B - Precise Answer ✔✔Answer: (C)
Both A and B require a fiduciary responsibility as both are acting as
agents for their principal.
A broker takes a listing on a residence. The seller tells the broker she is
selling because a freeway is planned nearby. The freeway is not
scheduled to be completed for five years. The path of the freeway might
affect the desirability of the property in the future. The broker:
(A) Need not disclose the planned freeway because the broker owes a
responsibility to the seller
(B) May disclose the planned freeway if the buyer specifically asks
(C) Must disclose the planned freeway whether asked or not
,(D) The statute of limitations is three years, so the broker does not need
to disclose since the freeway is scheduled for five years - Precise
Answer ✔✔Answer: (C)
Disclosure law requires the broker to disclose all facts affecting the
value or desirability of the property
When a Principal employs an Agent, this action creates:
(A) An agency relationship
(B) A fiduciary relationship
(C) Both A and B
(D) Neither A nor B - Precise Answer ✔✔Answer: (C)
Both A and B are correct
A salesperson tells his broker he is quitting and going to work for
another broker. His present broker should:
(A) Notify the Real Estate Commissioner and hold the license until
further notice from the Commissioner
(B) Give the salesperson his license and notify the Real Estate
Commissioner immediately
(C) Request cancellation of the salesperson's license
,(D) Call the other broker to confirm the change - Precise Answer
✔✔Answer: (B)
A fact of law
Termination of an agency may be accomplished in which of the
following ways?
(A) The acts of one or both of the parties, or by law
(B) Expiration of its terms
(C) Death or incapacity of either party
(D) Any of the above - Precise Answer ✔✔Answer: (D)
Fact. There are other ways, such as by agreement or revocation, but
these probably fall under A (the acts of one or both parties).
A broker may act as legally as the agent for both buyer and the seller,
but only if:
(A) The broker has the valid listing contract with the seller
(B) The buyer is a relative of the broker
(C) The broker informs and has the consent of both parties
(D) The broker notifies the seller before entering into a listing contract -
Precise Answer ✔✔Answer: (C)
, Fact of law
An implied agency is created by:
(A) Written contract
(B) Board of Realtors regulations
(C) Broker's acceptance of the agency confirmation
(D) Conduct of the parties - Precise Answer ✔✔Answer: (D)
Agency can be created by the action/s of the parties even though no
express written contract has been effected. This is known as "Ostensible
of Implied Agency."
The buyer and seller decide to go directly to escrow, and the buyer made
out a check to the escrow company and handed it directly to the escrow
clerk. As concerns the brokers trust account records:
(A) Broker must record the check in his/her trust account records
(B) Only records of trust funds that pass through the Broker's hands for
the benefit of a third party need be recorded
(C) The buyer cannot make out the check directly to escrow
(D) The escrow company should forward the check to the broker for
deposit in the trust account - Precise Answer ✔✔Answer: (B)
Statement of Fact
2024/2025
An agency relationship creates a fiduciary relationship between principal
and agent. Which of the following relationships illustrates a fiduciary
relationship?
(A) Real estate broker to his/her client
(B) Trustee to a beneficiary
(C) Both A and B
(D) Neither A nor B - Precise Answer ✔✔Answer: (C)
Both A and B require a fiduciary responsibility as both are acting as
agents for their principal.
A broker takes a listing on a residence. The seller tells the broker she is
selling because a freeway is planned nearby. The freeway is not
scheduled to be completed for five years. The path of the freeway might
affect the desirability of the property in the future. The broker:
(A) Need not disclose the planned freeway because the broker owes a
responsibility to the seller
(B) May disclose the planned freeway if the buyer specifically asks
(C) Must disclose the planned freeway whether asked or not
,(D) The statute of limitations is three years, so the broker does not need
to disclose since the freeway is scheduled for five years - Precise
Answer ✔✔Answer: (C)
Disclosure law requires the broker to disclose all facts affecting the
value or desirability of the property
When a Principal employs an Agent, this action creates:
(A) An agency relationship
(B) A fiduciary relationship
(C) Both A and B
(D) Neither A nor B - Precise Answer ✔✔Answer: (C)
Both A and B are correct
A salesperson tells his broker he is quitting and going to work for
another broker. His present broker should:
(A) Notify the Real Estate Commissioner and hold the license until
further notice from the Commissioner
(B) Give the salesperson his license and notify the Real Estate
Commissioner immediately
(C) Request cancellation of the salesperson's license
,(D) Call the other broker to confirm the change - Precise Answer
✔✔Answer: (B)
A fact of law
Termination of an agency may be accomplished in which of the
following ways?
(A) The acts of one or both of the parties, or by law
(B) Expiration of its terms
(C) Death or incapacity of either party
(D) Any of the above - Precise Answer ✔✔Answer: (D)
Fact. There are other ways, such as by agreement or revocation, but
these probably fall under A (the acts of one or both parties).
A broker may act as legally as the agent for both buyer and the seller,
but only if:
(A) The broker has the valid listing contract with the seller
(B) The buyer is a relative of the broker
(C) The broker informs and has the consent of both parties
(D) The broker notifies the seller before entering into a listing contract -
Precise Answer ✔✔Answer: (C)
, Fact of law
An implied agency is created by:
(A) Written contract
(B) Board of Realtors regulations
(C) Broker's acceptance of the agency confirmation
(D) Conduct of the parties - Precise Answer ✔✔Answer: (D)
Agency can be created by the action/s of the parties even though no
express written contract has been effected. This is known as "Ostensible
of Implied Agency."
The buyer and seller decide to go directly to escrow, and the buyer made
out a check to the escrow company and handed it directly to the escrow
clerk. As concerns the brokers trust account records:
(A) Broker must record the check in his/her trust account records
(B) Only records of trust funds that pass through the Broker's hands for
the benefit of a third party need be recorded
(C) The buyer cannot make out the check directly to escrow
(D) The escrow company should forward the check to the broker for
deposit in the trust account - Precise Answer ✔✔Answer: (B)
Statement of Fact
