Authorized Relationships Practice Questions

Every question explained

Prefer to study at your own pace? Here are all 9 questions. Read each one and pick your answer, then reveal the correct answer, the reasoning, and the trap that catches most candidates.

1. 1. A licensee shows a buyer several homes and never gives any written notice about the brokerage relationship. Under Florida law, what relationship does the licensee have with the buyer by default?

   • A.Single agent, because the licensee is helping the buyer
   • B.Transaction broker, which Florida presumes unless a single agent or no brokerage relationship is established in writing
   • C.Dual agent, because the licensee may also work with sellers
   • D.No relationship at all until a contract is signed
   ▸Show answer and explanation

   Correct answer: B. Transaction broker, which Florida presumes unless a single agent or no brokerage relationship is established in writing

   Why B is correct: Florida presumes that a licensee works as a transaction broker unless a single agent or no brokerage relationship is established in writing. A transaction broker provides limited representation and is the default relationship.

   Trap: Helping a buyer does not make a licensee a single agent. Without a written single-agent or no-brokerage notice, the relationship is transaction brokerage.

   Source: F.S. 475.278

2. 2. A single agent representing a seller wants to switch to a transaction broker so the brokerage can also work with the buyer. What is required for that change?

   • A.Nothing; the licensee may switch at any time
   • B.The seller's verbal agreement is enough
   • C.The seller's written consent before the change takes effect
   • D.Approval from the Florida Real Estate Commission
   ▸Show answer and explanation

   Correct answer: C. The seller's written consent before the change takes effect

   Why C is correct: A single agent may transition to a transaction broker, but only with the principal's written consent obtained before the change takes effect. The transition cannot happen on a verbal understanding.

   Trap: Verbal consent is not enough, and the consent must come before the change. The reverse switch, from transaction broker to single agent, is not how Florida handles this.

   Source: F.S. 475.278

3. 3. A buyer and a seller both want the same licensee to fully represent them in the same transaction with complete fiduciary duties. Under Florida law, the licensee should

   • A.agree, because full dual agency is allowed with written consent
   • B.decline full representation of both, because dual agency is prohibited in Florida, and instead work as a transaction broker giving limited representation
   • C.represent only the buyer and ignore the seller
   • D.refer both parties to an attorney before doing anything
   ▸Show answer and explanation

   Correct answer: B. decline full representation of both, because dual agency is prohibited in Florida, and instead work as a transaction broker giving limited representation

   Why B is correct: Dual agency, fully representing both the buyer and the seller as a single agent, is prohibited in Florida. When one brokerage works with both parties, the lawful path is transaction brokerage, which gives each side limited representation rather than full fiduciary representation.

   Trap: Florida does not allow dual agency even with consent. The lawful way to work with both parties is transaction brokerage.

   Source: F.S. 475.278

4. 4. A single agent for a seller tells the buyer, off the record, that the seller will accept 20,000 dollars less than the asking price. Which fiduciary duty did the agent most clearly violate?

   • A.Accountability
   • B.Obedience
   • C.Confidentiality
   • D.Reasonable care
   ▸Show answer and explanation

   Correct answer: C. Confidentiality

   Why C is correct: A single agent owes the principal full fiduciary duties, often remembered as OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accountability, and Reasonable care. Revealing the seller's bottom line to the buyer breaches the duty of confidentiality.

   Trap: Confidential information stays protected even after the relationship ends. A single agent cannot leak the principal's negotiating position.

   Source: F.S. 475.278

5. 5. Under a no brokerage relationship, which set of duties does a Florida licensee owe a buyer or seller?

   • A.Loyalty, obedience, and full confidentiality
   • B.Deal honestly and fairly, disclose known facts that materially affect the value of residential property and are not readily observable, and account for all funds
   • C.All of the fiduciary duties except loyalty
   • D.No duties whatsoever
   ▸Show answer and explanation

   Correct answer: B. Deal honestly and fairly, disclose known facts that materially affect the value of residential property and are not readily observable, and account for all funds

   Why B is correct: In a no brokerage relationship the person is a customer, not a client. The licensee owes only three duties: deal honestly and fairly, disclose known facts that materially affect the value of residential real property and are not readily observable to the buyer, and account for all funds.

   Trap: A no brokerage relationship still requires disclosure of known hidden material defects. Choosing customer status does not remove that duty.

   Source: F.S. 475.278

6. 6. A transaction broker is helping both a buyer and a seller. The seller privately tells the broker the lowest price she will accept. What may the transaction broker do with that information?

   • A.Share it with the buyer, because a transaction broker represents both sides equally
   • B.Keep it confidential; a transaction broker may not disclose that the seller will accept less than the asking price unless authorized
   • C.Share it only if the buyer asks directly
   • D.Disclose it because transaction brokers owe no confidentiality at all
   ▸Show answer and explanation

   Correct answer: B. Keep it confidential; a transaction broker may not disclose that the seller will accept less than the asking price unless authorized

   Why B is correct: A transaction broker owes limited confidentiality. The broker may not disclose that a seller will accept a price lower than the asking price, or that a buyer will pay more than the offered price, unless authorized. The seller's bottom line stays protected.

   Trap: Limited representation is not zero confidentiality. The transaction broker still cannot reveal a party's negotiating limits.

   Source: F.S. 475.278

7. 7. When must a Florida licensee make the single agent disclosure to a principal?

   • A.Only at closing
   • B.Before, or at the time of, entering into a listing agreement or an agreement for representation, or before the showing of property, whichever is first
   • C.Within 30 days of the first meeting
   • D.Disclosure is never required for a single agent
   ▸Show answer and explanation

   Correct answer: B. Before, or at the time of, entering into a listing agreement or an agreement for representation, or before the showing of property, whichever is first

   Why B is correct: The single agent disclosure must be given in writing before, or at the time of, entering into a listing agreement or an agreement for representation, or before the showing of property, whichever occurs first. Timing is part of what the exam tests.

   Trap: Disclosure is not a closing formality. For a single agent it comes at the start of the relationship, not the end.

   Source: F.S. 475.278; F.S. 475.2755

8. 8. A licensee working as a transaction broker knows the roof has a hidden leak that a buyer could not see during a normal walkthrough. The licensee must

   • A.say nothing, because a transaction broker owes no disclosure duties
   • B.disclose the known defect, because the duty to disclose known facts that materially affect value and are not readily observable applies across brokerage relationships
   • C.disclose it only if the buyer hires the brokerage as a single agent
   • D.disclose it only after the inspection period ends
   ▸Show answer and explanation

   Correct answer: B. disclose the known defect, because the duty to disclose known facts that materially affect value and are not readily observable applies across brokerage relationships

   Why B is correct: The duty to disclose known facts that materially affect the value of residential property and are not readily observable applies in every Florida brokerage relationship, including transaction brokerage and no brokerage relationship. A known hidden defect must be disclosed.

   Trap: Limited representation does not switch off the material-defect disclosure duty. Known, hidden, value-affecting facts must be disclosed regardless of relationship.

   Source: F.S. 475.278

9. 9. Which of the following is NOT one of the duties a Florida transaction broker owes?

   • A.Using skill, care, and diligence in the transaction
   • B.Presenting all offers and counteroffers in a timely manner
   • C.Undivided loyalty placing the customer's interest above all others
   • D.Accounting for all funds entrusted to the licensee
   ▸Show answer and explanation

   Correct answer: C. Undivided loyalty placing the customer's interest above all others

   Why C is correct: Undivided loyalty is a single agent duty, not a transaction broker duty. A transaction broker owes limited duties such as dealing honestly and fairly, using skill and care, presenting all offers and counteroffers, disclosing known material defects, accounting for funds, and limited confidentiality. Full loyalty is not among them.

   Trap: Loyalty belongs to single agency. A transaction broker gives limited representation, so undivided loyalty is the duty that does not apply.

   Source: F.S. 475.278