Free Rhode Island Agency Practice Test — LicenseIQ

Question 1

Two salespersons at the same brokerage represent the buyer and the seller in the same sale as designated client representatives. Which statement is correct?

Accepted Answer

Section 5-20.6-5(b) and (d) allow separate in-house representatives with written notice of the inherent conflict and the principal broker or designee as transaction coordinator. Dual facilitation is one licensee for both sides.

Question 2

What civil penalty may apply to a seller or agent for each violation of the lead inspection requirement in §5-20.8-11?

Accepted Answer

Section 5-20.8-11 sets $100 to $500 per violation. Up to $1,000 is the Sales Disclosure Act penalty.

Question 3

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 4

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 5

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Question 6

A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

Accepted Answer

Latent (hidden) defects known to the seller or agent must be disclosed; failing to do so can create liability for both.

Question 7

How does Chapter 5-20.6 treat common-law implied agency in residential transactions?

Accepted Answer

The chapter expressly displaces common-law agency for these transactions. Who pays the commission does not create representation.

Question 8

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 9

When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Accepted Answer

Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

Question 10

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 11

A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

Accepted Answer

Obedience requires following lawful instructions only. Discriminatory instructions violate fair housing laws and must be refused.

Question 12

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 13

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 14

A home was the site of a suicide five years ago. A buyer has not asked. Under Rhode Island law, must the seller's agent disclose it?

Accepted Answer

Section 5-20.8-6 says suicide, homicide, or another felony at the property is not a material fact, and no suit lies for nondisclosure, but the statute does not permit misrepresentation.

Question 15

An agent authorized to perform a single specific act for a principal is a:

Accepted Answer

A special (limited) agent has authority for a specific task, typical of a listing agent. A property manager is usually a general agent.

Question 16

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 17

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 18

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 19

The client a broker represents is the:

Accepted Answer

The principal is the client to whom the agent owes fiduciary duties; a customer is a party the agent works with but does not represent.

Question 20

Which of the following is a fiduciary duty an agent owes the principal?

Accepted Answer

Fiduciary duties are Confidentiality, Obedience, Accounting, Loyalty and Disclosure (COALD), plus reasonable care.

Question 21

At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Accepted Answer

Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

Question 22

During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Accepted Answer

Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

Question 23

Which agency enforces Rhode Island's Fair Housing Practices Act?

Accepted Answer

The Act defines the commission as the Rhode Island Commission for Human Rights. DBR can separately discipline licensees for violations.

Question 24

A listing agent receives an offer from buyers who have not yet received the seller's disclosure. What should the agent do?

Accepted Answer

The agent may not communicate the buyer's offer until the buyer has received the disclosure and signed a receipt.

Question 25

Under the Sales Disclosure Act, a listing agent is liable for which of the following?

Accepted Answer

Section 5-20.8-2 shields the agent from liability for the seller's representations and undisclosed defects; licensing law still holds agents liable for their own misrepresentations.

Rhode Island real estate agency practice test

1. Two salespersons at the same brokerage represent the buyer and the seller in the same sale as designated client representatives. Which statement is correct?

2. What civil penalty may apply to a seller or agent for each violation of the lead inspection requirement in §5-20.8-11?

3. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

4. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

5. An agency relationship can be terminated by all of the following EXCEPT:

6. A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

7. How does Chapter 5-20.6 treat common-law implied agency in residential transactions?

8. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

9. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

10. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

11. A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

12. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

13. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

14. A home was the site of a suicide five years ago. A buyer has not asked. Under Rhode Island law, must the seller's agent disclose it?

15. An agent authorized to perform a single specific act for a principal is a:

16. The best way to create an agency relationship is a(n):

17. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

18. Which statement about dual agency is correct?

19. The client a broker represents is the:

20. Which of the following is a fiduciary duty an agent owes the principal?

21. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

22. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

23. Which agency enforces Rhode Island's Fair Housing Practices Act?

24. A listing agent receives an offer from buyers who have not yet received the seller's disclosure. What should the agent do?

25. Under the Sales Disclosure Act, a listing agent is liable for which of the following?

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