1.0 Agency Relationships and Contracts Real Estate License Practice Quiz

56 exam-style questions covering 19% of the Real Estate License exam. Instant feedback on every answer, progress tracking, no signup required.

This domain is part of the Georgia Real Estate Salesperson License practice test. Each question is tagged by exam objective and difficulty so you can drill exactly the areas you need.

Sample Questions

Which of the following actions most clearly creates an express agency relationship between a seller and a real estate broker?
  • A. The seller and broker discussing potential listing prices over coffee
  • B. The seller giving the broker permission to walk through the property
  • C. The seller and broker signing a written listing agreement
  • D. The broker placing a sign on the property without the seller's knowledge

A signed listing agreement is the classic written, express grant of authority that creates an express agency relationship.

A seller's agent learns that the seller will accept much less than the listed price. Which fiduciary duty PROHIBITS the agent from sharing this information with a buyer?
  • A. confidentiality
  • B. accounting
  • C. obedience
  • D. care

Confidentiality prohibits disclosing information that could weaken the principal's bargaining position, including a willingness to accept less than the list price.

A buyer asks a licensee questions about a property and follows the licensee's advice on negotiating an offer, although no written agreement exists. The relationship that may have been formed is BEST described as which of the following?
  • A. express agency
  • B. implied agency
  • C. designated agency
  • D. universal agency

Implied agency arises from the parties' conduct rather than an express agreement and is the relationship suggested by these facts.

A listing agreement can terminate by all of the following events EXCEPT:
  • A. destruction of the listed property
  • B. the listing salesperson moving to a different brokerage firm
  • C. the death of the seller
  • D. mutual agreement of seller and broker

The listing belongs to the brokerage firm, not the individual salesperson, so the salesperson's move does not terminate it.

For a real estate sales contract to be valid, all of the following are required EXCEPT:
  • A. legally competent parties
  • B. an earnest money deposit from the buyer
  • C. an offer and acceptance
  • D. consideration

Earnest money is customary and demonstrates good faith but is not a required element of contract validity.

In a transaction in which one brokerage firm represents both the buyer and the seller through its licensees, the agency relationship that exists is MOST accurately classified as which of the following?
  • A. single agency
  • B. subagency
  • C. customer agency
  • D. dual agency

When one firm represents both buyer and seller in the same transaction, the firm is acting as a dual agent.

A licensee learns from the seller that the basement has flooded twice in the past year. When showing the property to buyers, the licensee should:
  • A. mention it only if a buyer specifically asks about water damage
  • B. refuse to show the property until the seller fixes the issue
  • C. share the information only with buyers who appear serious
  • D. disclose the material fact to all prospective buyers

Repeated flooding is a material defect, and the licensee's duty of honest dealing requires disclosure to all prospective buyers.

Although a buyer's agent owes loyalty to the buyer, the agent must still treat the seller honestly. The duty owed to the seller in this case is BEST described as which of the following?
  • A. loyalty
  • B. diligence
  • C. honesty and fair dealing
  • D. reasonable skill and care

Agents owe non-client parties the duty of honesty and fair dealing, including avoiding misrepresentation.

Key Terms in This Domain

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