ContractsIntermediateAlaska Exam

An Alaska broker enters into a property management agreement with a rental property owner. The agreement creates a(n):

APartnership between the broker and owner
BAgency relationship in which the broker manages the property as the owner's agentCorrect
CIndependent contractor relationship with no fiduciary duties, under standard practice
DSale and leaseback arrangement

Why Agency relationship in which the broker manages the property as the owner's agent Is Correct

Answer B: Agency relationship in which the broker manages the property as the owner's agent

A property management agreement creates an agency relationship. The property owner is the principal and the managing broker is the agent, authorized to manage the property on the owner's behalf.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

People Also Study

Practice More Alaska Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Alaska Quiz →