Rhode Island License Law

What is a 'principal' in the context of Rhode Island real estate agency law?

AThe lead broker in a real estate transaction
BThe party (buyer or seller) who authorizes a licensed agent to act on their behalf✓ Correct
CThe primary lender in a mortgage transaction
DThe Rhode Island DBR

Explanation

In agency law, the principal is the party who authorizes the agent to act on their behalf. In real estate, the seller (in a listing) or buyer (in a buyer agency agreement) is the principal who grants authority to the broker/agent.

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