Agency Practice Questions
194 questions on agency, each with an explanation. This area covers fiduciary duties, agency relationships, disclosure, termination.
Take the full test. Answers and explanations are shown when you submit, as on exam day.
A client authorizes an agent to reveal a relocation deadline but not a minimum acceptable price. Which disclosure is authorized?
This quiz is a study aid, not the real exam. Our questions are written by us to match the published content outline. They are not actual exam questions, no score here predicts a pass, and this site is not affiliated with, endorsed by, or sponsored by PSI, Pearson VUE, ARELLO, any state real estate commission, or any government agency. Your state commission and your candidate handbook are the only authoritative sources.
10 sample agency questions, answered
Every question above with its correct answer and the reasoning behind it. Read the explanations for the ones you answered correctly too. A lucky guess and knowing the rule look identical on a score report. These are sample questions from our larger bank.
1. A client authorizes an agent to reveal a relocation deadline but not a minimum acceptable price. Which disclosure is authorized?
Why: Consent can be limited to particular information. Permission concerning one bargaining fact does not automatically extend to another.
2. An agent purchases a client's listed property through an entity the agent controls. What fact should be disclosed?
Why: An intermediary entity does not eliminate the agent's personal interest. The client needs disclosure to evaluate the conflict and proposed transaction.
3. A broker representing both the seller and the buyer in the same transaction has obtained a signed dual agency consent from each party. What may the broker still NOT do?
Why: Even with written consent, a dual agent must keep each side's confidential bargaining information private, so revealing the lowest price the seller would accept is forbidden. Disclosing a known foundation crack is not confidential information but a material defect that must be revealed regardless of who the broker represents.
4. Which duties does a licensee owe to a customer — a party she does not represent?
Why: Customers get honesty, fair dealing and disclosure of known material defects; only clients get loyalty, obedience and confidentiality. Owing a customer nothing at all is the trap answer — an agent who lies to a customer is liable regardless of who she represents.
5. A listing agent secretly buys the property through a relative at below market value and resells it a month later at a large profit. The seller sues. The seller's strongest set of remedies includes:
Why: Self-dealing through an undisclosed relative breaches loyalty and disclosure, allowing rescission, recovery of the secret profit, and loss of the commission, plus discipline. Limiting the seller to the price difference ignores that a fiduciary who profits secretly must surrender the gain regardless of how the price compared.
6. Dual agency exists when:
Why: The defining feature is one brokerage owing fiduciary duties to both sides of a single transaction. Two firms cooperating is ordinary practice and creates no conflict, because each side has its own advocate.
7. A seller authorizes advertising a home at $430,000. The agent privately advertises $410,000 to create more calls. Which duty is implicated?
Why: An agent's marketing discretion is limited by the client's authorization. Changing a material term requires the client's informed approval.
8. Which statement about compensation and agency is correct?
Why: Agency arises from agreement or conduct, not from the source of the money — which is why a buyer's broker may be paid out of the listing broker's commission while owing fiduciary duties only to the buyer. Following the money is the single most common error on this topic.
9. After an agency relationship ends, which duties continue to bind the former agent?
Why: Confidences learned during the agency must be kept indefinitely, and the former agent must still account for any money or documents still in hand. Loyalty, obedience and the duty to keep disclosing end with the relationship itself.
10. An agent tells buyers, "This is the most charming street in the whole county." This statement is:
Why: Obvious opinion or sales enthusiasm that no reasonable buyer would treat as a statement of fact is puffing. It becomes actionable only when it crosses into a specific factual assertion the buyer relies on, such as a square footage or a roof age.
Where this weighting comes from
Weightings come directly from the test provider’s published examination content outline for the national portion of the salesperson exam. PSI publishes percentages only; Pearson VUE publishes scored-item counts only. PSI and Pearson VUE use different content taxonomies, so their weightings are not interchangeable and should not be averaged. Check which provider administers your state’s exam, and confirm against the current candidate handbook before you study. Outlines are revised periodically and older versions stay in circulation online. View the PSI outline.