Nebraska Agency
Practice Questions & Answers (2026)

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

Practice Questions

Nebraska Agency — Practice Questions & Answers

147 questions on Agency from the Nebraska real estate question bank. First 10 are free — sign up to unlock all 147.

Q1. In Nebraska, a licensee must provide the 'Disclosure of Brokerage Relationships' form:

A.Only after a purchase agreement is signed
B.At the first substantial contact with a prospective buyer or seller
C.Only when representing a buyer
D.At the time of closing

Explanation

Nebraska requires licensees to provide the agency disclosure form at the first substantial contact to inform consumers of the agency relationships available to them.

Q2. A buyer's agent in Nebraska owes which duty to the buyer client?

A.Disclosing the seller's financial motivation
B.Loyalty, obedience, disclosure, confidentiality, and reasonable care
C.Ensuring the property appraised at the purchase price
D.Providing legal advice regarding the purchase contract

Explanation

A buyer's agent owes fiduciary duties to the buyer including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable skill and care (often remembered as OLDCAR or similar mnemonics).

Q3. Under Nebraska agency law, when a licensee acts as a transaction broker, the licensee:

A.Represents only the seller in the transaction
B.Provides services to both parties without acting as an agent for either
C.Has the same fiduciary duties as a buyer's agent
D.Is prohibited from providing any advice to either party

Explanation

A transaction broker (also called a facilitator) assists both parties in completing the transaction without representing either as an agent, meaning full fiduciary duties do not apply.

Q4. Undisclosed dual agency is illegal because it:

A.Results in higher commission costs for the buyer
B.Violates the duty of loyalty owed to both clients simultaneously
C.Is not permitted under federal law
D.Prevents the transaction from being recorded properly

Explanation

Dual agency without disclosure and consent is illegal because it creates an inherent conflict of interest — the agent cannot fully serve the best interests of both buyer and seller at the same time.

Q5. An agent working under a listing agreement has the authority to:

A.Accept offers on behalf of the seller without the seller's approval
B.Market the property and present offers to the seller
C.Modify the listing price without consulting the seller
D.Approve repair requests made by the buyer

Explanation

A listing agent's authority under a typical listing agreement is to market the property and present offers. The agent does not have authority to accept, reject, or modify terms without the seller's direction.

Q6. An agency relationship can be terminated by:

A.Only the agent, upon written notice
B.Mutual agreement, expiration of the agency agreement, or completion of the transaction
C.The principal only, within the first 30 days
D.The courts, upon petition by either party

Explanation

An agency relationship may be terminated by mutual consent, expiration of the contract term, completion of the purpose, or by operation of law (e.g., death of either party or destruction of the property).

Q7. A real estate agent who represents the seller has a duty to disclose to ALL parties:

A.The seller's bottom-line price
B.Known material defects that could affect the buyer's decision to purchase
C.The seller's financial status
D.Other offers the seller has received

Explanation

Even a seller's agent must disclose known material defects to all parties. This duty of disclosure to third parties regarding material facts exists regardless of which party the agent represents.

Q8. In Nebraska, a transaction broker provides:

A.Full fiduciary representation to both buyer and seller
B.Facilitation services to both parties without acting as a fiduciary agent for either
C.Representation only to the buyer in a transaction
D.Legal advice on the terms of the contract

Explanation

A transaction broker facilitates the transaction by assisting both parties with competent, honest service but does not act as a fiduciary agent for either buyer or seller.

Q9. Ratification of an unauthorized act in agency occurs when:

A.The agent is given advance written permission to act
B.The principal approves or accepts the benefits of an agent's unauthorized act after it has occurred
C.The state licensing authority approves the agent's actions
D.The court orders the principal to honor the agent's actions

Explanation

Ratification occurs when a principal, after learning of an agent's unauthorized act, approves or accepts the benefits of that act, thereby making it as valid as if it had been originally authorized.

Q10. A listing agent receives multiple offers on the same day. Their duty to the seller is to:

A.Present only the highest-priced offer to save time
B.Present all offers to the seller promptly, unless instructed otherwise by the seller in writing
C.Select the strongest offer and present only that one
D.Hold all offers until the listing agent consults with the buyer's agents

Explanation

A listing agent must present all written offers to the seller promptly unless the seller has provided written instructions otherwise. The seller — not the agent — decides which offer to consider.

Q11. A sub-agency relationship arises when:

A.One broker directly represents the buyer
B.A cooperating agent works through the MLS and owes fiduciary duties to the seller, not the buyer
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