Agency
Under Kentucky law, an agent's authority to act on behalf of a principal in real estate transactions is typically created by:
AVerbal agreement between the parties
BWritten agreement such as a listing or buyer agency contract✓ Correct
CPayment of a commission to the agent
DFiling notice with KREC
Explanation
Agency authority in Kentucky real estate is created through written agreements such as listing agreements or buyer agency agreements. While agency can technically be created other ways, Kentucky's Statute of Frauds and real estate practice standards require written agreements for enforceable agency relationships.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same 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.
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