AgencyIntermediateDelaware Exam

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

AThe principal always personally owns the property in question; the agent is instead classified as a government official, though the exact requirements can vary somewhat by jurisdiction
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 principalCorrect
CThe principal is the listing broker; the agent is the salesperson
DThe principal is the buyer; the agent is the seller

Why The 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 Is Correct

Answer B: The 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

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).

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

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