AgencyIntermediateCalifornia Exam

The agency relationship between a California broker and salesperson is best described as:

AThe salesperson is an independent contractor with no agency relationship to the broker
BThe salesperson is an agent of the broker and acts under the broker's license and supervisionCorrect
CThe salesperson and broker are equal partners in all transactions
DThe broker is an agent of the salesperson for purposes of license compliance

Why The salesperson is an agent of the broker and acts under the broker's license and supervision Is Correct

Answer B: The salesperson is an agent of the broker and acts under the broker's license and supervision

A salesperson is an agent of their employing broker, acting under the broker's license, direction, and supervision. All transactions conducted by the salesperson are legally the responsibility of the broker.

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.

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