A broker who operates as a 'transaction broker' (non-agent facilitator) in California:
Why Is not recognized as a valid agency relationship under California law — agents must represent a principal Is Correct
Answer B: Is not recognized as a valid agency relationship under California law — agents must represent a principal
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
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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Related California Questions
- In California, which form is used to disclose the agency relationship to buyers and sellers?Agency
- Which state agency regulates real estate licensees in California?DRE & Licensing
- Under California law, which document is used to confirm the agency relationship in a residential real estate transaction?Agency
- Which of the following would automatically terminate an agency relationship in California?Agency
- In California, a listing agent who also brings the buyer and represents both parties must disclose dual agency:Agency
- Which California government agency has primary jurisdiction over the investigation of trust fund violations by real estate licensees?Trust Funds
Key Terms to Know
A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
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