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Regulatory Framework Review Practice Questions
Cumulative review of TRESA, RECO, and the Code of Ethics across all courses. Below are 5 free sample questions from our 10-question Regulatory Framework Review bank. Each comes with the correct answer and a full explanation.
Question 1 of 5
A registrant is asked by a self-represented party (SRP) for advice on whether to accept an offer. The SRP is not the registrant's client. What does the registrant owe the SRP?
- AFull fiduciary duties identical to those owed to a client
- BFairness, honesty, and accuracy of factual information, but no representation duties such as advice or advocacy
- CNothing, because the SRP is not paying the registrant
- DWhatever duties the registrant chooses to extend in the moment
Why B is correct
If a registrant starts giving an SRP strategic advice on whether to accept an offer or how to negotiate, they have effectively crossed into representation. That is one of the most common ways an unintended representation arrangement is created. The safer path is to refer the SRP to independent representation, then continue acting only on the client's side.
Question 2 of 5
A registrant tells a buyer they are working with that they are also representing the seller of the property the buyer is interested in. The buyer has not yet signed any acknowledgment. Under TRESA, what must happen?
- ANothing further is required because the disclosure was verbal.
- BThe brokerage must obtain written acknowledgment of multiple representation from both parties before continuing to act.
- CThe brokerage must withdraw from representing one of the parties.
- DOnly the seller's written acknowledgment is required because the seller signed the listing agreement first.
Why B is correct
Multiple representation is one of the highest-stakes ethics scenarios on the exam. The triggers are: (a) one brokerage representing more than one party in the same transaction, and (b) work continuing after that arrangement is recognized. Written acknowledgment from every represented party must be obtained before further work. Designated representation, also introduced under TRESA, is a workaround that can avoid putting the brokerage itself in multiple representation.
Question 3 of 5
Under TRESA, the term "customer service" was effectively replaced. What concept now applies to a person dealing with a registrant who is not representing them?
- ASelf-represented party
- BUnrepresented client
- CLimited service customer
- DImplied agency party
Why A is correct
If a question references "customer" or "customer service" in the older sense, it is almost always testing whether you recognize the new framework. Under TRESA, a person is either a represented client or a self-represented party. The duties owed in each case differ, but the categorization is binary.
Question 4 of 5
Designated representation, introduced under TRESA, allows a brokerage to do which of the following?
- AOperate without a Broker of Record for short periods.
- BDesignate one registrant to represent the buyer and a different registrant in the same brokerage to represent the seller, without putting the brokerage itself in multiple representation.
- CRefer a client to another brokerage in exchange for a referral fee.
- DSkip written disclosure of representation when both parties verbally agree.
Why B is correct
Designated representation is the most-tested TRESA Phase 2 concept. It changes how brokerages can structure intra-brokerage transactions: the brokerage is no longer treated as the legal agent for both parties when separate registrants are designated. Each designated registrant must still meet their full client-representation duties (loyalty, confidentiality, disclosure) to their assigned party.
Question 5 of 5
A registrant discovers, partway through a deal, that the seller materially misrepresented the property's condition to the buyer. The seller has instructed the registrant to keep this confidential. What does the Code of Ethics require?
- AMaintain seller confidentiality at all costs.
- BDisclose the material fact to the buyer or refuse to continue acting in a way that conceals it.
- CResign from representing the seller without telling either party why.
- DInform the brokerage's lawyer and otherwise stay silent.
Why B is correct
When confidentiality and honest dealing collide, the Code prioritizes honest dealing. Confidentiality protects strategic information (motivation, walk-away price, personal circumstances). It does not protect material misrepresentations or facts that, if undisclosed, would mislead another party. This is one of the most heavily tested ethics scenarios because it appears simple but resolves against the instinct to keep client confidence absolute.
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