PSI Virginia Real Estate Practice Exam

What is the primary role of a real estate broker?

1. To represent buyers exclusively

2. To manage property rentals

3. To make sales and purchases for a commission

4. To provide legal advice on property transactions

The correct answer is: To make sales and purchases for a commission

The primary role of a real estate broker is to facilitate the buying and selling of properties for a commission. Brokers act as intermediaries between buyers and sellers, guiding clients through the complexities of real estate transactions. This includes marketing properties, negotiating deals, and ensuring that all legal and financial aspects of a transaction are handled properly. Brokers have a fiduciary duty to their clients, meaning they must act in the best interests of the individuals they represent. While they can provide valuable insights and recommendations, their main function revolves around conducting transactions — securing deals, managing paperwork, and ensuring compliance with real estate laws. In contrast, representing buyers exclusively limits the scope of a broker's functions to one side of transactions, which is not the comprehensive role typically expected of a broker. Managing property rentals pertains more to the duties of property managers than to those of brokers primarily focused on sales. Providing legal advice on property transactions is beyond the typical scope of a broker's role, as legal matters should be handled by licensed attorneys specializing in real estate law. Thus, the focus on making sales and purchases for a commission accurately encapsulates the core responsibilities of a real estate broker.