Question 1

What is the legal term for the person who authorizes an agent to act on their behalf in a real estate transaction?

Accepted Answer

The principal. The principal grants authority to the agent to represent their interests in a transaction.

Question 2

What type of agency is created when a broker represents both the buyer and seller in the same transaction with written consent from both parties?

Accepted Answer

Dual agency. California law requires written disclosure and informed consent from both principals before a broker may act as a dual agent.

Question 3

What is an 'ostensible agency' in California real estate law?

Accepted Answer

An agency created by conduct or appearance rather than express agreement, where the principal's actions lead a third party to reasonably believe an agency exists.

Question 4

Which document most commonly establishes an express agency relationship between a seller and a listing broker in California?

Accepted Answer

A written listing agreement. This contract expressly authorizes the broker to act as the seller's agent and defines the scope of that authority.

Question 5

What is a 'special agent' in the context of California real estate?

Accepted Answer

An agent authorized to perform a specific act or transaction for the principal, such as selling a particular property. Most real estate brokers act as special agents.

Agency Law – California Real Estate Salesperson Exam

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