← Agency & Ethics – California Real Estate Salesperson Exam

Free Agency & Ethics – California Real Estate Salesperson Exam Practice Test (2026)

150 questions · 195 min · 70% to pass

150 Questions · 195 Minutes · 70% to Pass

Question 1 of 5

Sample Questions

Question 1

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 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 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 4

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.

Question 5

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.