Kovats Real Estate School Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Kovats Real Estate School Test with comprehensive resources including flashcards and multiple choice questions. Enhance your confidence and readiness for success today!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What obligation does a broker have towards his principal in real estate transactions?

To present all written offers received
To ensure the property is sold for the highest price
To solely represent the buyer’s interests
To avoid any conflicts of interest with clients

The correct answer is: To present all written offers received

In real estate transactions, a broker has a fiduciary duty to their principal, which includes the obligation to act in the best interests of that principal. Presenting all written offers received is a fundamental aspect of this duty. It ensures that the principal is fully informed about all potential transactions and can make knowledgeable decisions regarding the sale or purchase of a property. This practice upholds transparency and trust in the broker-client relationship, allowing the principal to consider every opportunity that might affect their interests. The obligation to present all offers aligns with the broker’s responsibility to keep their principal informed about the market and the progress of their transaction. While ensuring a sale at the highest price and avoiding conflicts of interest are important responsibilities, the specific act of presenting all written offers holds particular significance as it is a direct reflection of the broker's duty to communicate and represent the principal’s best interests fully.