AgencyIntermediateAlaska Exam

An agency relationship is most commonly created by:

AThe licensee performing services without a written agreement, in general
BA verbal or written listing agreement between broker and principalCorrect
CThe principal paying a commission at closing
DThe broker registering the client with the MLS

Why A verbal or written listing agreement between broker and principal Is Correct

Answer B: A verbal or written listing agreement between broker and principal

Agency relationships in real estate are most commonly created by a listing agreement or buyer representation agreement between the broker and the principal. While implied agency can arise from conduct, a written agreement is the standard and preferred method.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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