Ethics & Professional
Conduct Practice Exam
2026/2027 VERSION
WITH QUESTIONS AND
VERIFIED ANSWERS
100% CORRECT WITH
RATIONALES AND PDF
DOWNLOAD.
1. What is the primary purpose of
professional ethics in real estate?
,A. Increase commissions
B. Protect public interest
C. Reduce taxes
D. Promote competition
Answer: B. Protect public interest
Rationale: Ethics in real estate exist
primarily to safeguard clients, customers,
and the public from fraud,
misrepresentation, and unfair practices.
2. Which action best demonstrates
fiduciary duty?
A. Sharing client secrets with friends
B. Acting in the client’s best interest
,C. Prioritizing personal gain
D. Ignoring client instructions
Answer: B. Acting in the client’s best
interest
Rationale: Fiduciary duty requires loyalty
and putting the client’s interests above
all others.
3. A real estate agent must disclose:
A. Only positive property features
B. Material facts affecting value
C. Only buyer preferences
D. Commission rates only
Answer: B. Material facts affecting
value
, Rationale: Agents are legally and
ethically required to disclose facts that
could influence a buyer’s decision.
4. Dual agency occurs when a broker:
A. Represents only the seller
B. Represents both buyer and seller
C. Works without a license
D. Represents only the buyer
Answer: B. Represents both buyer and
seller
Rationale: Dual agency happens when
one broker represents both parties in the
same transaction.
Conduct Practice Exam
2026/2027 VERSION
WITH QUESTIONS AND
VERIFIED ANSWERS
100% CORRECT WITH
RATIONALES AND PDF
DOWNLOAD.
1. What is the primary purpose of
professional ethics in real estate?
,A. Increase commissions
B. Protect public interest
C. Reduce taxes
D. Promote competition
Answer: B. Protect public interest
Rationale: Ethics in real estate exist
primarily to safeguard clients, customers,
and the public from fraud,
misrepresentation, and unfair practices.
2. Which action best demonstrates
fiduciary duty?
A. Sharing client secrets with friends
B. Acting in the client’s best interest
,C. Prioritizing personal gain
D. Ignoring client instructions
Answer: B. Acting in the client’s best
interest
Rationale: Fiduciary duty requires loyalty
and putting the client’s interests above
all others.
3. A real estate agent must disclose:
A. Only positive property features
B. Material facts affecting value
C. Only buyer preferences
D. Commission rates only
Answer: B. Material facts affecting
value
, Rationale: Agents are legally and
ethically required to disclose facts that
could influence a buyer’s decision.
4. Dual agency occurs when a broker:
A. Represents only the seller
B. Represents both buyer and seller
C. Works without a license
D. Represents only the buyer
Answer: B. Represents both buyer and
seller
Rationale: Dual agency happens when
one broker represents both parties in the
same transaction.
