Unit 4: Real Estate Brokerage and Law of
Agency Exam Actual Questions and
Answers 2026
Fiduciary Relationship -
correct answer ✅role of a broker as the agent - one in which
the agent is placed in a position of trust and confidence and
normally is responsible for the money and/or property of another.
The agent owes the principal the duties of ____, ____, ____, ____,
and _____. -
correct answer ✅care, obedience, accounting, loyalty, and
disclosure
Care -
correct answer ✅As an agent, the broker must exercise a
reasonable degree of care while transacting business entrusted to
the broker by the principal
Obedience -
correct answer ✅The broker is obligated to act in good faith
at all times, obeying the principal's instructions
Accounting -
correct answer ✅The broker must be able to report the
status of all funds received from or on behalf of the principal
,Unit 4: Real Estate Brokerage and Law of
Agency Exam Actual Questions and
Answers 2026
Commingle -
correct answer ✅This law makes it illegal for brokers to
____, or mix, such monies with personal funds
Loyalty -
correct answer ✅The broker owes the principal the utmost
loyalty. An agent must always place a principal's interest above
those of the agent and above those of others with whom the agent
deals.
Disclosure -
correct answer ✅Agent for the seller has a duty to disclose:
-the agent's opinion of the market price for the property;
-all offers received (unless the seller has specifically instructed the
listing broker, in writing, to do otherwise);
-the identity of prospective purchasers, including any relationship
the agent has with them;
-the ability of a purchaser to complete the sale or offer a higher
price;
, Unit 4: Real Estate Brokerage and Law of
Agency Exam Actual Questions and
Answers 2026
-any interest the broker has in the buyer (such as the buyer's asking
the broker to manage the property after it is purchased); or
-the buyer's intention to resell the property for a profit.
The principal also owes certain duties to the agent or broker
including ___, ___, ___, and ___. -
correct answer ✅compensation, information,
indemnification, and availability
Compensation -
correct answer ✅The principal is liable for compensating the
broker by paying the specified fee on completion of the broker's
duties.
Information -
correct answer ✅The principal must furnish accurate
information requested by the broker.
Indemnification -
correct answer ✅The principal agrees to indemnify or
Agency Exam Actual Questions and
Answers 2026
Fiduciary Relationship -
correct answer ✅role of a broker as the agent - one in which
the agent is placed in a position of trust and confidence and
normally is responsible for the money and/or property of another.
The agent owes the principal the duties of ____, ____, ____, ____,
and _____. -
correct answer ✅care, obedience, accounting, loyalty, and
disclosure
Care -
correct answer ✅As an agent, the broker must exercise a
reasonable degree of care while transacting business entrusted to
the broker by the principal
Obedience -
correct answer ✅The broker is obligated to act in good faith
at all times, obeying the principal's instructions
Accounting -
correct answer ✅The broker must be able to report the
status of all funds received from or on behalf of the principal
,Unit 4: Real Estate Brokerage and Law of
Agency Exam Actual Questions and
Answers 2026
Commingle -
correct answer ✅This law makes it illegal for brokers to
____, or mix, such monies with personal funds
Loyalty -
correct answer ✅The broker owes the principal the utmost
loyalty. An agent must always place a principal's interest above
those of the agent and above those of others with whom the agent
deals.
Disclosure -
correct answer ✅Agent for the seller has a duty to disclose:
-the agent's opinion of the market price for the property;
-all offers received (unless the seller has specifically instructed the
listing broker, in writing, to do otherwise);
-the identity of prospective purchasers, including any relationship
the agent has with them;
-the ability of a purchaser to complete the sale or offer a higher
price;
, Unit 4: Real Estate Brokerage and Law of
Agency Exam Actual Questions and
Answers 2026
-any interest the broker has in the buyer (such as the buyer's asking
the broker to manage the property after it is purchased); or
-the buyer's intention to resell the property for a profit.
The principal also owes certain duties to the agent or broker
including ___, ___, ___, and ___. -
correct answer ✅compensation, information,
indemnification, and availability
Compensation -
correct answer ✅The principal is liable for compensating the
broker by paying the specified fee on completion of the broker's
duties.
Information -
correct answer ✅The principal must furnish accurate
information requested by the broker.
Indemnification -
correct answer ✅The principal agrees to indemnify or
