Answered

8. An agency relationship is created in which of the following cases?

A. When the seller asks to be represented and the broker agrees
B. When a tenant is communicating with a property manager and not the owner
C. When a licensee gets a phone call from someone they direct mailed
D. When a sales associate meets a customer at an open house



Answer :

GinnyAnswer

Final answer:

An agency relationship is formed when a seller requests representation from a broker, establishing the seller as the principal and the broker as the agent.


Explanation:

An agency relationship is created when the seller asks to be represented and the broker agrees. In this case, the seller becomes the principal, and the broker becomes the agent acting on behalf of the principal.

Agents are persons who work on behalf of others, known as principals, to make decisions and agreements. Fiduciary duty requires agents to act in the best interests of their principals to avoid conflicts of interest and maintain ethical conduct.

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