Question 1

In New York real estate, who is the 'principal' in an agency relationship?

Accepted Answer

The principal is the client who hires and authorizes the agent to act on their behalf — typically the seller or buyer who signs a representation agreement.

Question 2

What type of agency is created when a seller signs a listing agreement with a broker?

Accepted Answer

A special agency (also called a specific agency) is created, authorizing the broker to perform a specific act — finding a buyer — without the power to bind the principal to a contract.

Question 3

What is a 'general agency' in real estate?

Accepted Answer

A general agency authorizes the agent to perform a range of acts on behalf of the principal within a particular business or enterprise, such as a property manager managing a building.

Question 4

What is 'subagency' in a real estate transaction?

Accepted Answer

Subagency exists when a cooperating broker (buyer's broker) represents the seller's interests rather than the buyer's, acting as an agent of the listing broker and seller.

Question 5

What is a 'buyer's agent' in New York real estate?

Accepted Answer

A buyer's agent is a broker or salesperson who represents the buyer's interests exclusively, owing fiduciary duties to the buyer rather than the seller.

Agency Law – New York Real Estate Salesperson Exam

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