Montana Agency
Practice Questions & Answers (2026)

Agency law is one of the most tested subjects on the Montana real estate exam, and it's also one of the most misunderstood. The Montana Board of Realty Regulation expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under Montana law. Study these questions carefully — candidates who rely on national agency frameworks and don't account for MT-specific rules are among the most common failures on the state portion.

Practice Questions

Montana Agency — Practice Questions & Answers

133 questions on Agency from the Montana real estate question bank. First 10 are free — sign up to unlock all 133.

Q1. In Montana, which document must be provided to a buyer or seller at first substantive contact with a licensee?

A.A listing agreement
B.A buyer representation agreement
C.The Montana Broker Disclosure Form
D.A dual agency consent form

Explanation

Montana requires licensees to provide and explain the Montana Broker Disclosure Form at the first substantive contact to inform consumers of available agency relationships.

Q2. A Montana licensee who represents both buyer and seller in the same transaction with both parties' written consent is practicing:

A.Single agency
B.Sub-agency
C.Dual agency
D.Transaction brokerage

Explanation

Dual agency occurs when a licensee or brokerage represents both the buyer and the seller in the same transaction. In Montana, dual agency requires written informed consent from both parties.

Q3. Under Montana agency law, an agent owes the duty of confidentiality to their client. This means the agent must NOT disclose:

A.The existence of other offers on the property
B.Known material defects in the property
C.The client's motivation or urgency to sell at a lower price
D.The general price range the client is willing to accept

Explanation

Confidentiality requires the agent not to disclose information that would harm the client's bargaining position, such as the seller's motivation or willingness to accept less than the listing price.

Q4. A Montana seller's agent discovers a material defect during a showing. The agent's duty to the buyer is to:

A.Keep the defect confidential on behalf of the seller
B.Disclose the known material defect to the buyer
C.Refuse to show the property until the defect is repaired
D.Inform only the seller's attorney

Explanation

Even when representing the seller, Montana licensees have a duty to disclose known material defects to buyers. This duty to third parties cannot be waived by the seller.

Q5. In Montana, designated agency allows:

A.Two agents from different brokerages to represent both sides
B.A broker to designate separate agents within the same firm to represent buyer and seller respectively
C.An agent to represent multiple buyers competing for the same property
D.A salesperson to act as their own broker

Explanation

Designated agency in Montana allows a broker to assign separate agents within the same brokerage to represent the buyer and the seller, reducing the conflicts inherent in dual agency.

Q6. An agent's fiduciary duty of loyalty requires the agent to:

A.Present all offers to the seller, even those below list price
B.Place the client's interests above the agent's own interests
C.Disclose all offers to competing buyers
D.Ensure the transaction closes regardless of the client's wishes

Explanation

The duty of loyalty requires a real estate agent to put the client's interests above the agent's own personal or financial interests throughout the transaction.

Q7. Under Montana law, a buyer's agent owes which of the following duties to the buyer client?

A.Obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care
B.Full disclosure of seller motivations only
C.Loyalty to the seller to ensure a successful closing
D.Disclosure of the buyer's financial limits to the seller

Explanation

A buyer's agent owes the full set of fiduciary duties — obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care (OLD CAR) — to their buyer client.

Q8. The Montana Broker Disclosure Form must be provided at first substantive contact. 'First substantive contact' in Montana typically means:

A.When the buyer submits their first written offer
B.At the first meeting or discussion about a specific property or the buyer's needs
C.When a listing agreement is signed
D.Only at the closing table

Explanation

First substantive contact in Montana occurs at the first meeting or discussion where specific property needs, financial qualifications, or buying/selling motivations are addressed.

Q9. A listing agent who tells a prospective buyer that the seller will accept $10,000 less than the list price without the seller's permission has violated the duty of:

A.Obedience
B.Confidentiality
C.Accounting
D.Reasonable care

Explanation

Disclosing the seller's bottom line without authorization violates the duty of confidentiality, which requires the agent to protect information that would harm the client's bargaining position.

Q10. In Montana, a transaction broker:

A.Represents only the buyer in a transaction
B.Facilitates the transaction without representing either party as a fiduciary
C.Is required to disclose all information to both parties
D.Can only be used for commercial real estate

Explanation

A transaction broker in Montana facilitates the real estate transaction and assists both parties but does not owe fiduciary duties to either; they provide limited ministerial services.

Q11. Agency by ratification occurs when:

A.A broker obtains written consent before acting on behalf of a client
B.A principal approves or confirms an unauthorized act performed by an agent
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