Agency

What is 'principal' versus 'agent' in Delaware real estate agency law?

AThe principal owns the property; the agent is a government official
BThe principal is the person who authorizes the agent to act on their behalf (seller or buyer); the agent is the licensed real estate professional who acts on behalf of the principal✓ Correct
CThe principal is the listing broker; the agent is the salesperson
DThe principal is the buyer; the agent is the seller

Explanation

In agency law, the principal is the person who authorizes another to act on their behalf. In real estate, the principal can be a seller (who hires a listing agent) or a buyer (who works with a buyer's agent). The agent is the real estate licensee who represents the principal's interests. Understanding principal-agent relationships is fundamental to understanding fiduciary duties and legal authority in Delaware real estate.

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