Question 1

What is the legal term for the relationship created when a broker is authorized to act on behalf of a client in a real estate transaction?

Accepted Answer

An agency relationship. The broker (agent) owes fiduciary duties to the client (principal) and is authorized to represent their interests.

Question 2

What type of agency is created when a broker's actions and conduct imply an agency relationship, even without a written agreement?

Accepted Answer

Implied agency. It arises from the behavior and actions of the parties rather than an express written or verbal agreement.

Question 3

What is a 'dual agency' in real estate brokerage?

Accepted Answer

Dual agency occurs when a single broker or brokerage represents both the buyer and seller in the same transaction. It requires informed written consent from both parties.

Question 4

What is 'designated agency' in a brokerage context?

Accepted Answer

Designated agency occurs when a broker assigns different licensed agents within the same firm to represent the buyer and seller separately, avoiding full dual agency.

Question 5

How is a 'subagent' defined in real estate brokerage law?

Accepted Answer

A subagent is a licensee who represents the seller through cooperation with the listing broker, rather than through a direct agreement with the seller.

Brokerage Law – Real Estate Broker Exam

Get your Real Estate Broker Exam Pass Plan

Try These Cards

Want to keep studying?

Related Study Decks

Agency Relationships – Real Estate Broker Exam

Contract Law – Real Estate Broker Exam

Contracts & Closings – Real Estate Broker Exam

Fair Housing Laws – Real Estate Broker Exam

Investment Analysis – Real Estate Broker Exam

Land Use & Zoning – Real Estate Broker Exam

More Real Estate Broker Exam Resources

Real Estate Broker Exam Study Guide

Free Real Estate Broker Exam Practice Test

This is 1 of 7 topics