In a real estate transaction, who hires the agent to represent the parties' interests?

Study for the Burk Baker National Test. Use flashcards and multiple choice questions with hints and explanations to prepare effectively. Get ready for your exam!

Multiple Choice

In a real estate transaction, who hires the agent to represent the parties' interests?

Explanation:
In real estate, representation begins when a party hires an agent by signing a representation agreement. The person who does that hiring is the client. The agent then represents the client’s interests under the broker’s supervision, taking on fiduciary duties like loyalty, confidentiality, and full disclosure throughout the transaction. A customer, by contrast, isn’t represented and doesn’t receive those fiduciary protections. The broker is the firm that employs the agent, and a sales associate is the licensed person who carries out duties under the broker. So the one who hires the agent to represent the party’s interests is the client.

In real estate, representation begins when a party hires an agent by signing a representation agreement. The person who does that hiring is the client. The agent then represents the client’s interests under the broker’s supervision, taking on fiduciary duties like loyalty, confidentiality, and full disclosure throughout the transaction. A customer, by contrast, isn’t represented and doesn’t receive those fiduciary protections. The broker is the firm that employs the agent, and a sales associate is the licensed person who carries out duties under the broker. So the one who hires the agent to represent the party’s interests is the client.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy