Before you read
Test yourself first: 5 questions
Question 1 of 5
An agent should disclose whom they represent:
Answer: B. Agency relationships should be disclosed at the first substantive contact so the other party knows whether they are a client or a customer.
Question 2 of 5
As a general principle of agency disclosure, when should a licensee disclose to a consumer whom they represent in the transaction?
Answer: B. Agency relationships should be disclosed at the earliest practical opportunity, typically before any confidential information is exchanged - at or before first substantive contact.
Question 3 of 5
Combining federal disclosure timing concepts, which statement is correct?
Answer: B. Lead-based paint disclosure and the inspection opportunity must be provided before the buyer becomes contractually obligated, and agency relationships must be disclosed at the earliest practical opportunity - both emphasize early, pre-commitment disclosure.
Question 4 of 5
In most brokerage relationships, when a salesperson receives trust money, what should they generally do with it?
Answer: B. A salesperson works under the broker's license, so trust funds received by the salesperson should be turned over promptly to the employing broker for proper deposit.
Question 5 of 5
Dual agency is legal only when:
Answer: B. Dual agency (representing both sides) requires the informed, written consent of both buyer and seller; undisclosed dual agency is illegal.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
SELLER'S AGENT (listing agent) represents the seller; BUYER'S AGENT represents the buyer. A SUBAGENT works for the listing broker to help the seller. DUAL AGENCY (one agent both sides) is allowed only with informed written consent and limits what the agent can disclose; some states use a TRANSACTION BROKER (no fiduciary, just facilitates) instead. Always disclose who you represent — in writing, early.
Agency Relationships: FAQs
Is Agency Relationships on the real estate exam?
Yes. Agency & Fiduciary Duties is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
