Rhode Island Agency
Practice Questions & Answers (2026)

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

Practice Questions

Rhode Island Agency — Practice Questions & Answers

120 questions on Agency from the Rhode Island real estate question bank. First 10 are free — sign up to unlock all 120.

Q1. In Rhode Island, the agency disclosure form must be provided to a prospective buyer or seller:

A.At the first substantive contact before providing real estate services
B.Only when a written representation agreement is signed
C.At the time of the first showing
D.Only at closing

Explanation

Rhode Island requires real estate licensees to provide the agency disclosure form at the first substantive contact with a prospective buyer or seller, before any real estate services are provided, so consumers understand the agent's role.

Q2. A Rhode Island agent who represents neither the buyer nor the seller, but assists both parties with the transaction, is acting as a:

A.Dual agent
B.Subagent
C.Facilitator (transaction broker)
D.Special agent

Explanation

A facilitator or transaction broker assists both buyer and seller in completing a transaction without representing either party as a client. The facilitator owes limited duties to both parties but does not owe fiduciary duties such as loyalty or confidentiality.

Q3. Fiduciary duties owed by a Rhode Island buyer's agent to their client include all of the following EXCEPT:

A.Loyalty
B.Disclosure of all material facts known about the property
C.Obedience to all lawful instructions
D.Prioritizing the seller's financial interests

Explanation

A buyer's agent owes fiduciary duties — loyalty, disclosure, obedience, confidentiality, reasonable care, and accounting — to the buyer client. Prioritizing the seller's interests would be a breach of the agent's duty to the buyer.

Q4. In Rhode Island, subagency means that a cooperating broker working with the buyer is actually an agent of the:

A.Buyer
B.Listing broker
C.Seller through the listing broker
D.MLS

Explanation

In a subagency arrangement, the cooperating (buyer's) broker acts as a subagent of the listing broker and, through that relationship, is legally the agent of the seller. Subagency has largely been replaced by buyer agency in most transactions.

Q5. A Rhode Island listing agent learns that the seller's property has a leaking basement that was not disclosed. The agent's duty is to:

A.Keep the information confidential as instructed by the seller
B.Disclose the known material defect to prospective buyers
C.Include the information in the MLS remarks at the seller's discretion
D.Withdraw from the listing immediately

Explanation

Even though the agent represents the seller, Rhode Island law requires disclosure of known material facts (such as a leaking basement) to prospective buyers. Concealing a known material defect exposes both the agent and seller to liability.

Q6. Agency can be terminated by all of the following EXCEPT:

A.Mutual agreement of the principal and agent
B.Expiration of the listing agreement
C.A buyer making an offer on the listed property
D.Death of the principal

Explanation

A buyer making an offer does not terminate agency. Agency relationships typically end by mutual agreement, expiration of the contract term, completion of the purpose, revocation, renunciation, or death/incapacity of either party.

Q7. In Rhode Island, a buyer's agent who also represents the seller in the same transaction without full disclosure and consent is engaging in:

A.Permitted dual agency
B.Undisclosed dual agency, which is illegal
C.Transaction brokerage
D.Subagency

Explanation

Undisclosed dual agency — representing both buyer and seller in the same transaction without the knowledge and written consent of both parties — is illegal in Rhode Island and constitutes a serious violation of license law and fiduciary duty.

Q8. A Rhode Island seller's agent owes which of the following duties to a buyer who is NOT their client?

A.Loyalty and confidentiality
B.Honest and fair dealing and disclosure of known material defects
C.Obedience to the buyer's instructions
D.Confidentiality regarding the seller's motivation

Explanation

A seller's agent owes fiduciary duties only to the seller. However, they owe all parties — including buyers who are not their clients — honest and fair dealing and disclosure of known material facts that could affect the transaction.

Q9. Apparent authority in agency arises when:

A.A principal expressly grants authority to an agent in writing
B.A third party reasonably believes an agent has authority based on the principal's conduct
C.An agent acts on behalf of a principal in an emergency
D.Two agents share responsibilities for the same client

Explanation

Apparent authority (also called ostensible authority) exists when a principal's conduct leads a third party to reasonably believe an agent has authority to act, even if that authority was not expressly granted. The principal can be bound by such acts.

Q10. A Rhode Island buyer signs a buyer representation agreement with an agent. The agent's duties include all of the following EXCEPT:

A.Searching for properties that meet the buyer's criteria
B.Disclosing the buyer's maximum purchase price to the seller to get a better deal
C.Presenting all offers and counteroffers promptly
D.Advising the buyer on market conditions

Explanation

An agent representing the buyer has a duty of confidentiality to the buyer. Disclosing the buyer's maximum price to the seller would be a serious breach of fiduciary duty. All other options are proper duties of a buyer's agent.

Q11. Which type of listing agreement gives only ONE broker the right to sell, but the owner retains the right to sell the property themselves without paying a commission?

A.Exclusive right to sell
B.Exclusive agency
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