Free 5-question sample test with instant feedback. See how ready you are.
Question 1
What is the term for the person who authorizes an agent to act on their behalf in a real estate transaction?
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?
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?
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?
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?
Answer: Before or at the time the listing agreement is signed. The seller must sign an acknowledgment that they received the disclosure.