A homeowner hires a brokerage to manage a 20-unit apartment complex, authorizing it to lease units, collect rents, and hire maintenance vendors on an ongoing basis. What type of agent is the brokerage in that capacity?
Correct Answer
A) General agent
General agent is correct because the brokerage is authorized to handle a broad range of ongoing acts for the principal within a particular area of activity, namely property management.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This General Principles Of Agency Question
Background Knowledge for General Principles Of Agency
Real World Application in General Principles Of Agency
Common Mistakes to Avoid on General Principles Of Agency Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
More General Principles Of Agency Questions
A listing agreement creates an agency relationship between:
A property management agreement between an owner and a property manager typically specifies which of the following?
What is 'designated agency' in the context of a real estate brokerage?
A real estate team receives a referral from a past client. The team leader assigns the referral to a team member. The team member shows the buyer several properties. Who is the buyer's agent?
A buyer's agent compensation can be structured as:
- → A commercial tenant is negotiating a five-year lease for retail space. The tenant hires a tenant representative broker to negotiate lease terms on the tenant's behalf. What agency relationship exists between the tenant and the tenant representative?
- → A property manager signs a lease on behalf of the property owner. The management agreement authorizes the manager to execute leases for terms up to one year. The manager signs a three-year lease with a commercial tenant. What is the likely consequence?
- → A property manager discovers that a rental unit has a significant mold problem. The manager repairs the visible mold but does not inform the property owner about the extent of the damage or the potential liability. Has the property manager violated any agency duty?
- → The minimum requirement for real estate professional advertising is:
- → Extravagant sales claims to attract buyers represent:
- → Licensed agents must ensure:
- → Real estate commissions are typically based on:
- → The document defining the broker-seller relationship is:
- → An agent with complete legal authority to act for a principal in all matters is a:
- → Under the new rules, how can a buyer's agent be compensated?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
Previous Question
Under a signed representation agreement, which word describes the person who is entitled to the broker's loyalty, obedience, and confidentiality?
Next Question
After signing a buyer-representation agreement, Parker James enters into an agency relationship and is now owed fiduciary duties by the brokerage. What term best describes Parker James's status?