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IA Real Estate practice questions

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Question 1Real Property Characteristics, Ownership, and Interests

Which of the following items is treated as real property rather than personal property?

  1. A freestanding refrigerator
  2. A portable space heater
  3. A built-in bookcase attached to the wall Correct answer.
  4. A potted plant sitting in a movable planter box

Explanation

Items permanently affixed to the structure and adapted to the use of the property are fixtures and pass with the real estate. Movable goods that can be carried away without damage remain personal property.

Question 2Real Property Characteristics, Ownership, and Interests

A tenant farms land under a one-year lease with no renewal option. Mid-season the landlord sells the property, ending the tenancy before harvest. Who is entitled to the unharvested crops?

  1. The landlord, because the crops are legally part of the real estate until harvested
  2. The new owner, because title to the land passed with the crops
  3. The tenant, because the crops are the tenant's personal property Correct answer.
  4. The tenant and the landlord equally, by operation of law

Explanation

Emblements are crops planted by a tenant who loses the tenancy through no fault of the tenant. The tenant may re-enter to harvest them because the crops are treated as the tenant's personal property.

Question 3Real Property Characteristics, Ownership, and Interests

A restaurant tenant installs custom ovens and a walk-in cooler to run the business. When the lease ends, these trade fixtures:

  1. belong to the tenant only if the lease contains an express provision
  2. may be removed by the tenant if no material damage results Correct answer.
  3. must be abandoned in place when the tenancy ends
  4. become the landlord's property automatically at the end of the lease term

Explanation

Trade fixtures are items a business tenant installs for commercial use and are treated as the tenant's personal property. The tenant may remove them before the lease ends, provided removal does not cause substantial damage to the premises.

Question 4Real Property Characteristics, Ownership, and Interests

A developer grants a neighbor the right to cross one of his parcels to reach a public road. The right benefits the neighbor's land and passes with that land when the neighbor sells. This right is:

  1. a profit à prendre to cross the parcel
  2. a revocable license from the developer
  3. an easement appurtenant Correct answer.
  4. an easement in gross held by the neighbor personally

Explanation

An easement appurtenant benefits a dominant parcel and burdens a servient parcel, and it automatically passes with the dominant land when that land is conveyed. Because the right benefits the neighbor's property rather than the neighbor personally, it is appurtenant.

Question 5Real Property Characteristics, Ownership, and Interests

A homeowner gives a friend permission to park a boat in the driveway for the summer. The friend's right is best described as:

  1. an easement appurtenant
  2. a life estate
  3. an easement by estoppel
  4. a revocable license Correct answer.

Explanation

Permission to use another's land for a specific purpose is a license, which is personal to the holder and revocable by the owner. It creates no interest in the land that would run with title.

Question 6Real Property Characteristics, Ownership, and Interests

Owen conveys his farm 'to Brenda for the life of Carla.' Brenda holds:

  1. a life estate pur autre vie Correct answer.
  2. a fee simple determinable estate
  3. a term of years tenancy
  4. a vested remainder interest

Explanation

A life estate measured by the life of someone other than the holder is a life estate pur autre vie. Brenda possesses the farm for as long as Carla lives, and Brenda's interest ends when Carla dies.

Question 7Real Property Characteristics, Ownership, and Interests

Gail deeds land 'to the town, so long as it is used as a park.' If the town stops using the land as a park, title:

  1. remains with the town, which holds a fee simple absolute
  2. passes to the state under the law of escheat
  3. automatically reverts to Gail or her heirs Correct answer.
  4. reverts only if Gail brings an action to re-enter

Explanation

Words such as 'so long as' create a fee simple determinable, which ends automatically when the stated condition fails. The grantor keeps a possibility of reverter, and no lawsuit is needed to restore title.

Question 8Real Property Characteristics, Ownership, and Interests

Which unities must exist for a joint tenancy with right of survivorship to be created?

  1. Time, title, and possession, but not interest
  2. Interest and possession, but not time or title
  3. Time, title, and interest, but not possession
  4. Time, title, interest, and possession Correct answer.

Explanation

A joint tenancy requires the four unities: the co-owners must acquire their interests at the same time, by the same instrument, with equal shares, and with equal rights of possession. Missing any one of the four prevents the survivorship feature from arising.

Question 9Real Property Characteristics, Ownership, and Interests

Two unrelated investors buy an office building as tenants in common, contributing 70 percent and 30 percent of the price. If one dies, that owner's share:

  1. is forfeited to the other owner by operation of law
  2. must be purchased by the other owner at market value
  3. passes to the deceased owner's heirs or devisees Correct answer.
  4. passes automatically to the surviving co-owner

Explanation

Tenants in common hold undivided fractional interests with no right of survivorship. Each owner's share is freely devisable and descends to heirs in the absence of a will.

Question 10Real Property Characteristics, Ownership, and Interests

In a community property state, one spouse inherits money during the marriage and deposits it in an account titled only in that spouse's name. The funds are:

  1. community property because it was acquired during the marriage
  2. separate property of the inheriting spouse Correct answer.
  3. joint tenancy property held by both spouses
  4. community property unless the other spouse signs a disclaimer

Explanation

Community property consists of property acquired during marriage by the efforts of either spouse. Property received by gift, inheritance, or devise is separate property, and separate property keeps that character when it is kept separately identified.

Question 11Real Property Characteristics, Ownership, and Interests

In a condominium, the owner of a unit holds title to:

  1. a share of the corporation that owns the building, plus a proprietary lease
  2. the unit only, with no interest in the common areas
  3. a divided interest in the land beneath the unit only
  4. the unit in fee simple plus an undivided interest in common elements Correct answer.

Explanation

Condominium ownership combines a separate fee simple estate in the unit with an undivided share of the common elements as a tenant in common with other unit owners. The common elements cannot be separated from the unit.

Question 12Real Property Characteristics, Ownership, and Interests

In a housing cooperative, a resident's interest is best described as:

  1. a life estate in a unit granted by the corporation
  2. shares of stock plus a proprietary lease Correct answer.
  3. a leasehold in a unit with an option to buy
  4. fee simple title to a unit plus a share of common areas

Explanation

A cooperative corporation owns the entire building, and each resident owns personal property in the form of shares and receives a proprietary lease for a particular unit. The resident does not hold title to the unit itself.

Question 13Real Property Characteristics, Ownership, and Interests

After 12 years of open, notorious, continuous, hostile, and exclusive possession of a neighbor's unused lot, a possessor in a state with a 10-year statutory period may:

  1. take title automatically without any court action
  2. seek a court decree confirming title Correct answer.
  3. claim title only if the owner paid the taxes
  4. claim a prescriptive easement rather than title

Explanation

Adverse possession for the statutory period transfers title, but the possessor typically must quiet title through a judicial action to make the title marketable. The statutory period in this state has already run.

Question 14Real Property Characteristics, Ownership, and Interests

A parcel becomes landlocked after being split from a larger tract and has no access to a public road. The owner most likely has:

  1. a license to cross the neighbor's land
  2. an easement by necessity over the surrounding land Correct answer.
  3. no right of access, because the parcel was split voluntarily
  4. a prescriptive easement over the neighbor's land

Explanation

When a tract is divided and one part is left without access to a public way, the law implies an easement by necessity over the surrounding land. The easement lasts as long as the necessity continues.

Question 15Real Property Characteristics, Ownership, and Interests

A landowner uses a clearly marked path across a neighbor's land for 15 years without permission. Under a 10-year prescriptive period, the landowner has most likely acquired:

  1. a prescriptive easement for the path Correct answer.
  2. a license that the neighbor may revoke
  3. title to the path by adverse possession
  4. an easement by necessity over the path

Explanation

Open, continuous, adverse use of another's land for the prescriptive period creates a prescriptive easement, which is a right of use rather than ownership. Title by adverse possession requires exclusive possession of the parcel, which a path user does not have.

Question 16Real Property Characteristics, Ownership, and Interests

A recorded subdivision covenant limits each lot to single-family residential use. A buyer who purchases with notice is:

  1. bound only if the covenant appears in the buyer's deed
  2. bound by the covenant as an encumbrance on title Correct answer.
  3. free of the covenant after 20 years in all cases
  4. free of the covenant because it is not a zoning ordinance

Explanation

A restrictive covenant that runs with the land binds later owners, and recording gives constructive notice to all purchasers regardless of whether the covenant is repeated in each deed. The covenant operates as an encumbrance on the title.

Question 17Real Property Characteristics, Ownership, and Interests

An owner conveys all mineral rights beneath her land to a mining company while keeping the surface. Which statement is correct?

  1. The owner holds a surface estate; the company holds the mineral estate Correct answer.
  2. The owner keeps the minerals until the company actually removes them from the ground
  3. The transfer is void because a single parcel cannot be divided into estates
  4. The company now owns the entire parcel, including the surface, in fee simple

Explanation

Land may be severed horizontally, creating separate estates in the surface and in the subsurface minerals. The owner retains the surface estate, and the mining company owns the mineral estate.

Question 18Real Property Characteristics, Ownership, and Interests

Three siblings inherit a farm as tenants in common and disagree about whether to sell. Any one of them may:

  1. dissolve the tenancy only by unanimous written agreement
  2. convey clear title to the whole farm without the others' consent
  3. bring an action for partition of the property Correct answer.
  4. force the others to buy out his or her share

Explanation

Each tenant in common may demand partition, which ends the co-tenancy by physically dividing the property or by ordering a sale and dividing the proceeds. The right does not depend on the consent of the other co-tenants.

Question 19Real Property Characteristics, Ownership, and Interests

A city ordinance limits building height to four stories. This restriction is an exercise of:

  1. escheat
  2. eminent domain
  3. police power Correct answer.
  4. taxation

Explanation

Police power is the government's authority to regulate land use for the public health, safety, and welfare, and zoning ordinances such as height limits are a classic example. No title to the property is taken from the owner.

Question 20Real Property Characteristics, Ownership, and Interests

Two friends own a home as joint tenants. One conveys her interest to a third party without telling the other. The result is:

  1. the joint tenancy is severed and becomes a tenancy in common Correct answer.
  2. the third party receives a life estate measured by the co-tenant's life
  3. the conveyance is void because the co-tenant did not consent
  4. the joint tenancy continues unchanged between the two remaining owners

Explanation

A joint tenant may convey an interest without the co-tenant's consent, and the transfer destroys the unity of title. The remaining owners then hold as tenants in common, and the right of survivorship is extinguished as to that share.

Question 21Encumbrances, Liens, and Transfer of Title

Which statement best defines a lien?

  1. A recorded restriction on land use
  2. An option to buy the property
  3. A transfer of legal title to a lender
  4. A charge against property that secures payment of a debt Correct answer.

Explanation

A lien is a nonpossessory interest held by a creditor that encumbers the property as security for a debt or obligation. It does not transfer title, and it is discharged when the underlying obligation is satisfied.

Question 22Encumbrances, Liens, and Transfer of Title

Which type of lien attaches to all real and personal property owned by a debtor rather than to one identified parcel?

  1. A mechanic's lien
  2. A judgment lien Correct answer.
  3. A mortgage lien
  4. A property tax lien

Explanation

A judgment lien is a general lien: once the judgment is recorded in a county, it encumbers all real property the debtor owns there and, depending on state law, personal property as well. Specific liens such as mortgages, tax liens, and mechanic's liens attach only to a designated parcel.

Question 23Encumbrances, Liens, and Transfer of Title

Which deed conveys whatever interest the grantor may hold without making any promises about the quality of title?

  1. General warranty deed
  2. Special warranty deed
  3. Bargain and sale deed
  4. Quitclaim deed Correct answer.

Explanation

A quitclaim deed contains no covenants of title; it simply releases whatever interest the grantor may have, if any. A grantee under a quitclaim deed has no contractual claim against the grantor for title defects.

Question 24Encumbrances, Liens, and Transfer of Title

Which statement describes an easement appurtenant?

  1. It benefits a parcel and passes with title to that parcel. Correct answer.
  2. It is personal to the holder and ends when the holder sells the land.
  3. It can be created only by a court order.
  4. It may be used anywhere on the servient parcel without limit.

Explanation

An easement appurtenant benefits the dominant parcel and burdens the servient parcel, and it runs with the land when either parcel is transferred. It requires two parcels with different owners and cannot exist in favor of a person apart from land.

Question 25Encumbrances, Liens, and Transfer of Title

Which of the following is an involuntary lien?

  1. A recorded easement
  2. A property tax lien Correct answer.
  3. A deed of trust
  4. A mortgage lien

Explanation

A lien is involuntary when it arises by operation of law rather than by the owner's agreement, as with tax liens, judgment liens, and mechanic's liens. Mortgages and deeds of trust are voluntary liens because the owner signs them as security for a loan.

Question 26Encumbrances, Liens, and Transfer of Title

A grantor signs, acknowledges, and records a deed but never delivers it to the grantee. What is the effect?

  1. No title passes because delivery is missing. Correct answer.
  2. Equitable title passes at signing and legal title at recording.
  3. Title passes when the deed is recorded.
  4. Title passes when the grantor dies intestate.

Explanation

A valid conveyance requires delivery of the deed with present intent by the grantor to transfer title, plus acceptance by the grantee. Signing and recording alone do not transfer title if delivery never occurs.

Question 27Encumbrances, Liens, and Transfer of Title

Work on a project begins in March, a mortgage is recorded in April, and a mechanic's lien for the work is recorded in July. In many states, the mechanic's lien will do which of the following?

  1. Take priority over the mortgage by relating back to March Correct answer.
  2. Rank behind the mortgage in every jurisdiction
  3. Attach only to the contractor's equipment
  4. Fail entirely because it was recorded last

Explanation

Most states give a mechanic's lien priority from the date labor or materials were first furnished, so it can outrank a mortgage recorded after the work began. This relation-back rule protects contractors who improve property before financing is recorded.

Question 28Encumbrances, Liens, and Transfer of Title

A judgment creditor records a certified copy of its judgment in the county where the debtor owns land. The judgment lien then does which of the following?

  1. Attaches to the debtor's land in that county Correct answer.
  2. Ends when the debtor refinances
  3. Reaches only personal property
  4. Attaches only with the debtor's consent

Explanation

Recording the judgment in the county creates a lien on the debtor's real property located there as of the recording date, and on property later acquired in that county. The lien generally lasts for a statutory period and may be renewed or revived.

Question 29Encumbrances, Liens, and Transfer of Title

Under a race-notice recording statute, a later buyer of land prevails over an earlier unrecorded interest only if the later buyer does which of the following?

  1. Pays full value at a public auction conducted by the sheriff
  2. Takes without notice, whether or not the buyer records
  3. Records first, whether or not the buyer knew of the earlier interest
  4. Records first and takes without notice Correct answer.

Explanation

A race-notice statute protects a subsequent purchaser who both takes without notice of the prior interest and records before that interest is recorded. Notice alone is not enough, and recording alone is not enough.

Question 30Encumbrances, Liens, and Transfer of Title

The covenant of quiet enjoyment in a general warranty deed promises the grantee which of the following?

  1. No neighbors will build improvements on adjoining land.
  2. The property may be used for any lawful purpose the grantee chooses.
  3. The grantor will pay all future property taxes.
  4. Possession will not be disturbed by superior title. Correct answer.

Explanation

The covenant of quiet enjoyment assures the grantee of possession free from lawful eviction by someone holding superior title. If the grantee is disturbed by a superior claim, the grantor may be liable for damages.

Question 31Encumbrances, Liens, and Transfer of Title

A claimant seeks an easement by prescription over a neighbor's land. The claimant's use must be which of the following?

  1. Granted by a recorded deed of easement
  2. Ordered by a court after the neighbors litigate a boundary dispute
  3. Open, adverse, and continuous for the statutory period Correct answer.
  4. Permissive, occasional, and documented in a written agreement

Explanation

Prescription is analogous to adverse possession: the use must be open and notorious, adverse to the owner, continuous, and maintained for the statutory period. Permission defeats the claim because permissive use is not adverse.

Question 32Encumbrances, Liens, and Transfer of Title

After a borrower defaults on a deed of trust, the trustee ordinarily may do which of the following?

  1. Sell the property at a nonjudicial foreclosure sale Correct answer.
  2. Take title only after a court enters a deficiency judgment
  3. Keep the property as compensation for the unpaid debt
  4. Sell the property only with the borrower's written consent

Explanation

A deed of trust conveys title to a trustee with a power of sale, so on default the trustee may conduct a nonjudicial foreclosure after complying with statutory notice requirements. This avoids the delay and expense of a court-supervised foreclosure.

Question 33Encumbrances, Liens, and Transfer of Title

A special warranty deed differs from a general warranty deed because the grantor does which of the following?

  1. Warrants only against its own acts Correct answer.
  2. Makes no promises about title at all
  3. Warrants title against every claim, whenever arising
  4. Conveys a life estate and keeps the remainder

Explanation

Under a special warranty deed the grantor warrants title only against defects created by the grantor or those claiming under the grantor. A general warranty deed covers the entire chain of title against all lawful claims.

Question 34Encumbrances, Liens, and Transfer of Title

A lis pendens recorded against a property gives notice of which of the following?

  1. A lawsuit affecting title to the property is pending Correct answer.
  2. A mechanic's lien has already been foreclosed
  3. The county has condemned the property for public use
  4. The owner has missed a mortgage payment

Explanation

A lis pendens gives constructive notice that litigation affecting title to the property is pending, so anyone who acquires an interest during the suit is bound by the outcome. It must be supported by a pending action concerning the property.

Question 35Encumbrances, Liens, and Transfer of Title

To acquire title by adverse possession, a claimant's possession must be which of the following?

  1. Approved by the county recording office
  2. Permitted by the owner and intermittent
  3. Actual, open, hostile, and continuous Correct answer.
  4. Based on a written lease from the owner

Explanation

Adverse possession requires actual, open and notorious, exclusive, hostile, and continuous possession for the statutory period. Permission from the owner destroys the hostile element, and no recording approval is involved.

Question 36Encumbrances, Liens, and Transfer of Title

An owner's title insurance policy typically protects the owner against which of the following?

  1. Any loss in market value if prices fall
  2. Covered title defects existing at the policy date Correct answer.
  3. Defects the owner creates after the policy date
  4. The cost of routine repairs to the property

Explanation

An owner's title policy indemnifies the insured against loss from covered title defects of record that existed on the policy date, up to the policy amount. It does not insure market value, physical condition, or defects created later by the insured.

Question 37Encumbrances, Liens, and Transfer of Title

A first lender signs a subordination agreement that lets a later mortgage move ahead of it. The practical result is which of the following?

  1. The later mortgage becomes void
  2. The later mortgage gains priority in a foreclosure Correct answer.
  3. The first mortgage is discharged entirely
  4. Both mortgages share priority equally

Explanation

Subordination changes lien priority by agreement rather than by recording date, so the subordinated lender stands behind the favored loan in foreclosure. The debt itself remains owed; only its ranking changes.

Question 38Encumbrances, Liens, and Transfer of Title

A buyer takes title with a purchase-money mortgage given to the seller. Two years earlier, a judgment creditor had recorded a lien against the buyer in that county. Which interest has priority?

  1. The judgment lien, because it was recorded first
  2. The judgment lien, because it attached to all the buyer's property
  3. The two liens share priority equally
  4. The purchase-money mortgage Correct answer.

Explanation

A purchase-money mortgage generally takes priority over liens against the purchaser that attached before the purchaser acquired title, because those liens can reach only the equity the buyer actually received. The seller's financing enabled the acquisition and is preferred.

Question 39Encumbrances, Liens, and Transfer of Title

An easement is extinguished by merger when which of the following occurs?

  1. The dominant owner stops using it for one year
  2. The easement is assigned to a third party
  3. The servient owner records a notice of termination
  4. One owner acquires title to both parcels Correct answer.

Explanation

Merger occurs when the same person owns the dominant and servient estates in fee, because a owner cannot hold an easement over their own land. If the parcels are later separated, the easement does not automatically revive.

Question 40Encumbrances, Liens, and Transfer of Title

An owner dies intestate, leaving a surviving spouse, children, and real property. Title to the real property generally passes in which manner?

  1. To the creditors of the estate
  2. To the heirs under state descent law Correct answer.
  3. To the state by escheat
  4. To the spouse automatically, without probate

Explanation

When an owner dies without a will, real property passes to the heirs determined by the state's intestate succession statute, subject to administration of the estate and payment of lawful claims. The court-supervised process confirms who the heirs are and clears title.

Question 41Agency, Brokerage Relationships, and Fiduciary Duties

An agency relationship in a real estate transaction is best described as:

  1. A consensual relationship in which the agent acts for a principal and is subject to the principal's control Correct answer.
  2. A relationship that begins only when the licensee earns a commission
  3. A status that arises automatically whenever a licensee advertises a property
  4. A guarantee by the licensee that the property will sell within the listing term

Explanation

Agency is a consensual relationship founded on the principal's authorization and the agent's consent, with the agent acting on the principal's behalf and under the principal's direction. It is not created by advertising, by the payment of compensation, or by any promise of a result.

Question 42Agency, Brokerage Relationships, and Fiduciary Duties

Which of the following is a fiduciary duty that a licensee owes to a client?

  1. Scheduling a home inspection
  2. Accounting for money and property received Correct answer.
  3. Ordering a title commitment
  4. Recording the deed with the county

Explanation

Fiduciary duties include loyalty, obedience, disclosure, confidentiality, reasonable care and skill, and accounting for all money and property entrusted to the agent. The other listed tasks are transaction logistics handled by service providers, not fiduciary duties.

Question 43Agency, Brokerage Relationships, and Fiduciary Duties

A consumer who is not represented by any licensee in a transaction is owed which duty by the licensee?

  1. Undivided loyalty and advocacy
  2. Honest dealing and disclosure of known adverse material facts Correct answer.
  3. Obedience to the consumer's lawful instructions
  4. Confidentiality of the consumer's financial information

Explanation

An unrepresented consumer is a customer, not a client, so the licensee owes honesty and fair dealing plus disclosure of known adverse material facts about the property. Loyalty, confidentiality, and obedience flow only from an agency relationship.

Question 44Agency, Brokerage Relationships, and Fiduciary Duties

An Iowa licensee may act as a dual agent only after:

  1. agreeing to reduce the total commission by half
  2. obtaining the written informed consent of all parties Correct answer.
  3. resigning from one side of the transaction
  4. obtaining prior commission approval for each transaction

Explanation

Dual agency is permitted only with the informed written consent of all parties after full disclosure of the conflicts involved. A dual agent must then remain neutral and may not advocate for either side.

Question 45Agency, Brokerage Relationships, and Fiduciary Duties

A licensee must give a consumer the agency disclosure:

  1. before the consumer signs a written agency agreement Correct answer.
  2. only if the consumer asks about representation
  3. within three days after an offer is accepted
  4. at the closing table

Explanation

Agency disclosure must occur early, before the consumer commits to a written agency agreement, so the consumer knows whose interests the licensee will serve. Disclosure cannot be deferred to closing or triggered only by a consumer's question.

Question 46Agency, Brokerage Relationships, and Fiduciary Duties

Commingling occurs when a licensee:

  1. pays interest earned on trust funds to the client
  2. mixes client funds with the broker's own operating funds Correct answer.
  3. converts trust funds to the licensee's personal use
  4. deposits a buyer's earnest money into a properly labeled trust account

Explanation

Commingling is the improper mixing of trust funds with the broker's personal or business funds. Conversion is the separate and more serious act of actually using the funds for the licensee's own purposes.

Question 47Agency, Brokerage Relationships, and Fiduciary Duties

The fiduciary duty of obedience requires a licensee to follow:

  1. the client's lawful instructions Correct answer.
  2. the supervising broker's instructions over the client's
  3. only instructions that are given in writing
  4. every instruction a client gives, whether lawful or not

Explanation

The duty of obedience is limited to lawful instructions within the scope of the agency. A licensee must refuse instructions that would require unlawful conduct such as discrimination or misrepresentation.

Question 48Agency, Brokerage Relationships, and Fiduciary Duties

A buyer signs a buyer agency agreement, and the seller separately agrees to pay the buyer's broker a cooperating fee at closing. The buyer's broker represents:

  1. neither party, since the fee comes from the seller
  2. the seller, because the seller pays the fee
  3. the buyer, under the buyer agency agreement Correct answer.
  4. both parties as a dual agent

Explanation

The agency relationship is established by the agreement and the parties' consent, not by who pays the fee. A cooperating fee paid by the seller does not make the buyer's broker the seller's agent absent a separate agreement.

Question 49Agency, Brokerage Relationships, and Fiduciary Duties

After a listing agreement expires, the former client tells the agent that the client would accept $20,000 less than list price. When a new prospective buyer asks the agent about price, the agent should:

  1. disclose it only if the buyer signs a buyer agency agreement
  2. keep the information confidential Correct answer.
  3. disclose it if the seller has not relisted the property
  4. disclose it because the listing has expired

Explanation

The duty of confidentiality continues after the agency relationship ends and covers information that could harm the former client's negotiating position. Expiration of the listing does not release the agent from that duty.

Question 50Agency, Brokerage Relationships, and Fiduciary Duties

While acting as a disclosed dual agent, a licensee may:

  1. advocate for whichever party is more likely to close the transaction
  2. recommend a price that favors the party paying the larger commission
  3. relay one party's confidential price motivation to the other
  4. assist both parties and share information without advocating for either Correct answer.

Explanation

A dual agent facilitates the transaction and treats both parties fairly but may not advocate for one side over the other. Confidential information learned from one party may not be passed to the other.