Agency

Question 1

Emily Young is selling her 2-bedroom, 1-bathroom condominium. She enters into a written exclusive right-to-sell listing agreement with a local real estate licensee. Which of the following correctly states the agency relationship created by this type of listing agreement?

Answer 1

Express agency.

• The test question states that the listing agreement was formalized in writing. An express agency is one that was formalized–before the fact–either verbally or in writing. The traditional rule (in the “Statute of Frauds”) states that a listing agreement cannot be enforced in court unless it is in writing and signed by the party to be charged. Test-Taking Tip: Because it is frequently tested, it is worth reviewing the other promises, agreements, and contracts that must be in writing to satisfy the Statute of Frauds.

Question 2

All of the following are agency relationships EXCEPT _____________.

Answer 2

the real estate salesperson-buyer relationship

*the real estate salesperson is not an agent, the broker is.