Real Estate Broker License Practice Exam 2
Questions and correct Answers (Verified Answers)
with Rationales 2025
1. Which of the following is a fiduciary duty owed by a broker to their principal?
A. Advertising
B. Loyalty
C. Market analysis
D. Commission negotiation
Rationale: Loyalty is a key fiduciary duty a broker owes to their client, requiring
the broker to put the client's interests above all else.
2. Which document transfers ownership of real property from one person to
another?
A. Lease
B. Listing Agreement
C. Deed
D. Mortgage
Rationale: A deed is the legal document used to transfer ownership of real
property.
,3. What is the primary purpose of a listing agreement?
A. Transfer ownership
B. Authorize the broker to find a buyer
C. Secure financing
D. Record title
Rationale: A listing agreement authorizes the broker to act as the agent in
finding a buyer for the property.
4. Which type of listing allows a seller to use multiple brokers and only pay the
one who sells the property?
A. Exclusive right-to-sell
B. Open listing
C. Net listing
D. Exclusive agency
Rationale: An open listing is non-exclusive and allows multiple brokers; only the
one who procures the sale earns a commission.
5. Which of the following best defines a net listing?
A. Listing with a net profit guarantee
B. Broker’s commission is the excess over a set amount
C. Buyer nets a profit
D. Net worth must be disclosed
, Rationale: In a net listing, the broker keeps any amount received over the
seller’s desired price as their commission.
6. When must a broker present all written offers to the seller?
A. Within 5 business days
B. As soon as possible
C. After negotiation
D. Upon buyer approval
Rationale: Brokers are obligated to present all offers promptly and objectively.
7. Which of the following is considered commingling?
A. Putting client money in escrow
B. Depositing client funds into the broker’s personal account
C. Earning a commission
D. Sharing listings
Rationale: Commingling occurs when a broker mixes client funds with personal
or business funds, which is illegal.
8. What is the primary purpose of a CMA (Comparative Market Analysis)?
A. Establish title history
B. Estimate property value based on comparables
C. Determine loan eligibility
D. Assess tax liability
Questions and correct Answers (Verified Answers)
with Rationales 2025
1. Which of the following is a fiduciary duty owed by a broker to their principal?
A. Advertising
B. Loyalty
C. Market analysis
D. Commission negotiation
Rationale: Loyalty is a key fiduciary duty a broker owes to their client, requiring
the broker to put the client's interests above all else.
2. Which document transfers ownership of real property from one person to
another?
A. Lease
B. Listing Agreement
C. Deed
D. Mortgage
Rationale: A deed is the legal document used to transfer ownership of real
property.
,3. What is the primary purpose of a listing agreement?
A. Transfer ownership
B. Authorize the broker to find a buyer
C. Secure financing
D. Record title
Rationale: A listing agreement authorizes the broker to act as the agent in
finding a buyer for the property.
4. Which type of listing allows a seller to use multiple brokers and only pay the
one who sells the property?
A. Exclusive right-to-sell
B. Open listing
C. Net listing
D. Exclusive agency
Rationale: An open listing is non-exclusive and allows multiple brokers; only the
one who procures the sale earns a commission.
5. Which of the following best defines a net listing?
A. Listing with a net profit guarantee
B. Broker’s commission is the excess over a set amount
C. Buyer nets a profit
D. Net worth must be disclosed
, Rationale: In a net listing, the broker keeps any amount received over the
seller’s desired price as their commission.
6. When must a broker present all written offers to the seller?
A. Within 5 business days
B. As soon as possible
C. After negotiation
D. Upon buyer approval
Rationale: Brokers are obligated to present all offers promptly and objectively.
7. Which of the following is considered commingling?
A. Putting client money in escrow
B. Depositing client funds into the broker’s personal account
C. Earning a commission
D. Sharing listings
Rationale: Commingling occurs when a broker mixes client funds with personal
or business funds, which is illegal.
8. What is the primary purpose of a CMA (Comparative Market Analysis)?
A. Establish title history
B. Estimate property value based on comparables
C. Determine loan eligibility
D. Assess tax liability
