REAL ESTATE BROKER LICENSE
EXAM | CORRECT ANSWERS WITH
RATIONALES. A+ GUARANTEED
SUCCESS
1. Which of the following best defines a real estate broker?
A. An individual who works only under a salesperson
B. A licensed professional who can operate their own
brokerage and supervise agents
C. Someone who appraises property for tax purposes
D. A person who only rents properties
Answer: B
Rationale: Brokers can operate independently, manage
their own office, and supervise licensed agents.
2. What is the main difference between a broker and a
salesperson?
A. Brokers cannot list properties
B. Salespersons can work independently
C. Brokers can operate their own brokerage and supervise
salespersons
,D. Brokers cannot receive commissions
Answer: C
Rationale: Brokers have additional responsibilities and
licensing privileges compared to salespersons.
3. A broker must maintain a trust account for client funds.
This is to:
A. Avoid paying taxes
B. Keep client funds separate from personal or business
funds
C. Earn interest for personal use
D. Avoid audits
Answer: B
Rationale: Trust accounts prevent commingling and protect
client deposits.
4. Which type of agency allows a broker to represent both
buyer and seller with full disclosure?
A. Single agency
B. Dual agency
C. Exclusive agency
,D. Transaction brokerage
Answer: B
Rationale: Dual agency is legal only with informed consent
and disclosure.
5. What is the broker’s primary fiduciary duty?
A. Inspect property
B. Protect client’s interests, disclose material facts, and act
in good faith
C. Set mortgage rates
D. Collect property taxes
Answer: B
Rationale: Brokers must prioritize client interests above all
else.
6. A broker’s office is required to:
A. Keep records of all transactions for a specific number of
years
B. Conduct appraisals
C. Guarantee mortgage approvals
D. Only list commercial properties
, Answer: A
Rationale: Record-keeping ensures compliance with state
regulations and audits.
7. Which of the following is illegal under federal law for
brokers?
A. Commingling client funds
B. Advertising properties
C. Supervising salespersons
D. Holding open houses
Answer: A
Rationale: Mixing client funds with personal funds violates
trust account regulations.
8. When must a broker disclose dual agency?
A. Before entering any agreement
B. After closing
C. At property inspection
D. Only if asked
Answer: A
EXAM | CORRECT ANSWERS WITH
RATIONALES. A+ GUARANTEED
SUCCESS
1. Which of the following best defines a real estate broker?
A. An individual who works only under a salesperson
B. A licensed professional who can operate their own
brokerage and supervise agents
C. Someone who appraises property for tax purposes
D. A person who only rents properties
Answer: B
Rationale: Brokers can operate independently, manage
their own office, and supervise licensed agents.
2. What is the main difference between a broker and a
salesperson?
A. Brokers cannot list properties
B. Salespersons can work independently
C. Brokers can operate their own brokerage and supervise
salespersons
,D. Brokers cannot receive commissions
Answer: C
Rationale: Brokers have additional responsibilities and
licensing privileges compared to salespersons.
3. A broker must maintain a trust account for client funds.
This is to:
A. Avoid paying taxes
B. Keep client funds separate from personal or business
funds
C. Earn interest for personal use
D. Avoid audits
Answer: B
Rationale: Trust accounts prevent commingling and protect
client deposits.
4. Which type of agency allows a broker to represent both
buyer and seller with full disclosure?
A. Single agency
B. Dual agency
C. Exclusive agency
,D. Transaction brokerage
Answer: B
Rationale: Dual agency is legal only with informed consent
and disclosure.
5. What is the broker’s primary fiduciary duty?
A. Inspect property
B. Protect client’s interests, disclose material facts, and act
in good faith
C. Set mortgage rates
D. Collect property taxes
Answer: B
Rationale: Brokers must prioritize client interests above all
else.
6. A broker’s office is required to:
A. Keep records of all transactions for a specific number of
years
B. Conduct appraisals
C. Guarantee mortgage approvals
D. Only list commercial properties
, Answer: A
Rationale: Record-keeping ensures compliance with state
regulations and audits.
7. Which of the following is illegal under federal law for
brokers?
A. Commingling client funds
B. Advertising properties
C. Supervising salespersons
D. Holding open houses
Answer: A
Rationale: Mixing client funds with personal funds violates
trust account regulations.
8. When must a broker disclose dual agency?
A. Before entering any agreement
B. After closing
C. At property inspection
D. Only if asked
Answer: A
