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Real Estate Brokers Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is the primary legal responsibility of a real estate broker to their client?✔✔Fiduciary duty
What must a broker do before paying a commission to a sponsored salesperson?✔✔Ensure the transaction closed and the salesperson was licensed at the time of the transaction
What document typically outlines how a broker will be compensated in a listing agreement?✔✔The commission clause
What is the purpose of a broker price opinion (BPO)?✔✔To estimate the probable selling price of a property for a client
What action can a broker take if a client refuses to disclose a known material defect?✔✔Refuse to continue representing the client
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How should a broker handle earnest money received from a buyer?✔✔Deposit it in a trust account within the timeframe required by law
What does it mean when a broker “commingles” funds?✔✔Illegally mixes client money with personal or business funds
What kind of agency relationship is created when a broker is authorized to act for a client in a wide range of matters?✔✔General agency
What is the difference between a salesperson and a broker?✔✔A broker can operate independently and supervise others; a salesperson must work under a broker
Who is legally responsible for the actions of a sponsored salesperson?✔✔The sponsoring broker
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