California DRE Salesperson Exam

Laws of Agency & Fiduciary Duties

This module covers 17% of the California DRE Salesperson exam, about 25 questions. Master agency relationships, fiduciary duties, disclosure requirements, and how agents are created and terminated.

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Drill all key agency terms and definitions. Tap to flip.
24 cards
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20 questions per attempt. Covers all agency topics.
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Laws of Agency & Fiduciary Duties
Complete flashcards and at least one practice test to unlock. Score 80% or higher to master this module.
Key concepts
Fiduciary duties (COALD)
Care, Obedience, Accounting, Loyalty, and Disclosure. An agent owes all five duties to their principal.
Dual agency
When a broker represents both buyer and seller in the same transaction. Legal in California with written consent from both parties.
Agency disclosure requirement
California law requires agents to disclose their representation in writing at or before the first substantive communication.
Exclusive right to sell
The most common listing type. The broker earns commission regardless of who finds the buyer, including the seller.
Procuring cause
The agent whose uninterrupted efforts directly led to the completed sale. Determines who earns the commission in disputed situations.
Commingling
Illegally mixing client funds with personal or broker funds. A violation of DRE regulations that can result in license revocation.
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Module 2 · Laws of Agency & Fiduciary Duties

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Your study path
① Flashcards
Flip through all key terms and definitions. Complete the deck to unlock Mastery and log your first 30% progress.
② Practice questions
20 questions covering every topic in this module. Retake as many times as you want. Finishing your first attempt moves you to 60%.
③ Mastery quiz
Unlocks after you complete flashcards and practice. Score 80% or higher to hit 100% and mark this module complete.
Topic chips
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