← Agency Law – California Real Estate Salesperson Exam

California Real Estate Salesperson Exam Practice Test

Free 5-question sample test with instant feedback. See how ready you are.

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Sample Questions

Question 1

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

Answer: The principal. The principal grants authority to the agent to represent their interests in a transaction.

Question 2

What type of agency is created when a broker represents both the buyer and seller in the same transaction with written consent from both parties?

Answer: Dual agency. California law requires written disclosure and informed consent from both principals before a broker may act as a dual agent.

Question 3

What is an 'ostensible agency' in California real estate law?

Answer: An agency created by conduct or appearance rather than express agreement, where the principal's actions lead a third party to reasonably believe an agency exists.

Question 4

Which document most commonly establishes an express agency relationship between a seller and a listing broker in California?

Answer: A written listing agreement. This contract expressly authorizes the broker to act as the seller's agent and defines the scope of that authority.

Question 5

What is a 'special agent' in the context of California real estate?

Answer: An agent authorized to perform a specific act or transaction for the principal, such as selling a particular property. Most real estate brokers act as special agents.