General Principles Of AgencyProperty_management_commercial_teamsMEDIUM
A commercial property owner hires a broker to find a tenant for a 50,000 square-foot warehouse. The broker locates a suitable tenant and negotiates a 10-year lease. The owner pays the broker a commission based on the total lease value. What type of agency did the broker hold?
Correct Answer
B) A special agency to accomplish the specific task of finding a tenant and negotiating the lease
The broker held a special agency—authorized to perform a specific task (finding a tenant and negotiating a lease) on behalf of the owner. Once the task was completed, the agency terminated.
Answer Options
A
A buyer's agency representing the tenantB
A special agency to accomplish the specific task of finding a tenant and negotiating the leaseC
A universal agency with authority over all the owner's business affairsD
No agency, because commercial leasing does not involve agency relationshipsWhy This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
special_agencycommercial_leasebrokerwarehouseagency
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