In West Virginia, who is the 'principal' in a real estate agency relationship?
Correct Answer
B) The client on whose behalf the licensee acts
In a real estate agency relationship, the 'principal' is the client on whose behalf the agent (licensee) acts. The principal is the party who has authorized the agent to act and to whom fiduciary duties are owed. In West Virginia, as in all states, the principal may be a seller, buyer, landlord, or tenant depending on the nature of the representation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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