Question 1

What is the term for the person who authorizes an agent to act on their behalf in a real estate transaction?

Accepted Answer

The principal. In real estate, the principal is typically the buyer or seller who hires the agent to represent their interests.

Question 2

What type of agency relationship is created when a seller signs a listing agreement with a broker?

Accepted Answer

An express agency relationship. The listing agreement is a written contract that explicitly establishes the broker as the seller's agent.

Question 3

What is 'ostensible agency' (also called implied agency) in California real estate?

Accepted Answer

An agency created by the conduct or actions of the parties rather than by a written or verbal agreement, where a third party reasonably believes an agency relationship exists.

Question 4

In California, what document must agents use to disclose the nature of the agency relationship to buyers and sellers?

Accepted Answer

The Disclosure Regarding Real Estate Agency Relationships (AD form). It must be provided before or at the time of the first substantive contact with the principal.

Question 5

Under California law, when must a listing agent provide the agency disclosure form to the seller?

Accepted Answer

Before or at the time the listing agreement is signed. The seller must sign an acknowledgment that they received the disclosure.

Agency & Ethics – California Real Estate Salesperson Exam

Get your California Real Estate Salesperson Exam Pass Plan

Try These Cards

Want to keep studying?

Related Study Decks

Agency Law – California Real Estate Salesperson Exam

California Real Estate Salesperson Exam — Complete Bundle

Contracts & Deeds – California Real Estate Salesperson Exam

Contracts & Disclosures – California Real Estate Salesperson Exam

Escrow & Title – California Real Estate Salesperson Exam

Escrow & Transfer – California Real Estate Salesperson Exam

More California Real Estate Salesperson Exam Resources

California Real Estate Salesperson Exam Study Guide

Free California Real Estate Salesperson Exam Practice Test

This is 1 of 7 topics