Agency
In a real estate transaction, the principal is best defined as:
AThe most experienced agent in the transaction
BThe party who authorizes an agent to act on their behalf✓ Correct
CThe broker who holds the listing
DThe person with the highest offer
Explanation
The principal is the party who authorizes an agent to act on their behalf in the agency relationship — typically the buyer or seller in a real estate transaction.
Related Alabama Agency Questions
- A buyer's agent in Alabama owes which duty to the seller?
- A listing agreement is a contract between:
- In Alabama, which type of agency relationship is created when a broker represents both buyer and seller with written consent?
- Subagency in Alabama means:
- Which type of agency is created when a principal's actions lead a third party to reasonably believe an agency relationship exists?
- A subagent in Alabama represents:
- Which listing agreement type provides the brokerage with the greatest level of protection and is MOST commonly used?
- The duty of obedience requires an agent to follow all lawful instructions of the client. An agent may refuse instructions that:
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