In a seller-as-principal arrangement, who is the client?

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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 seller-as-principal arrangement, who is the client?

Explanation:
In real estate, the client (principal) is the person who hires and authorizes the broker to act on their behalf. In a seller-as-principal arrangement, that person is the seller, who signs the listing contract and to whom the broker owes fiduciary duties like loyalty, confidentiality, and disclosure. The buyer would be a customer or, if there’s a separate agreement, a client of a buyer’s agent—not the broker’s client in this setup. The lender isn’t the client in this arrangement either. So, the seller is the client.

In real estate, the client (principal) is the person who hires and authorizes the broker to act on their behalf. In a seller-as-principal arrangement, that person is the seller, who signs the listing contract and to whom the broker owes fiduciary duties like loyalty, confidentiality, and disclosure. The buyer would be a customer or, if there’s a separate agreement, a client of a buyer’s agent—not the broker’s client in this setup. The lender isn’t the client in this arrangement either. So, the seller is the client.

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