Who are the four primary role players in a typical real estate transaction? (2024)

Who are the four primary role players in a typical real estate transaction?

T/F: The four primary role players in a typical transaction are: the buyer (or renter), the seller (or landlord), and a license holder representing each party (two total). T/F: The various people involved in a brokerage include the broker, agent, associate broker, and cooperating broker.

Who is the principal in a typical real estate transaction?

The principal is the individual who is selling the real estate property, while the agent is the licensed broker who has been contracted to represent the seller. In a complex market, it's a responsible choice for a seller to hire an agent to handle the intricate processes that come along with selling real estate.

Who is the principal in a typical real estate transaction quizlet?

Explanation: Typically, the listing brokerage acts as an agent for the seller, who is the principal. Explanation: Laws such as Washington's real estate agency law require real estate agents to disclose which party or parties they represent in a transaction.

Who may a licensee represent in a real estate transaction quizlet?

A licensee can represent : A seller A buyer A landlord A tenant No matter whom the licensee represents , he or she needs a written agreement that clearly defines the relationship of the parties Before we discuss the specific aspects of real estate agency relationships in Washington , let's look at some agency - related ...

Who represents the buyer in the traditional real estate transaction?

Traditionally, all agents involved in a real estate transaction legally represent the Seller (both the “Listing Agent” and the “Selling Agent.”) When a Buyer's Agent is involved, the person buying the property is represented by the “Selling Agent,” who is known as the “Buyer's Agent.”

Who are the principals in a transaction?

What is a Principal in a Real Estate Transaction? So, what is a principal? In simple terms, the principals in a real estate sale transaction would be the buyer and the seller. In the case of an escrow account, the principals would be the parties who give instructions to the escrow holder.

What are the four different types of principals in real estate?

Principals are categorized based upon whether their identity is disclosed to third parties with whom the agent interacts on their behalf. A principal can be classified as Disclosed, Partially-disclosed, or Undisclosed.

Who is not a principal in a real estate transaction?

A principal acts for his own account, not on behalf of another. third persons are individuals, or associations (corporations, limited partnerships and limited liability companies) other than the broker's client, with whom the broker has contact as an agent acting on behalf of his client.

Which of the following people involved in a real estate transaction are principal to a transaction according to Virginia real estate law?

"Principal to a transaction" means a party to a real estate transaction including without limitation a seller or buyer, landlord or tenant, optionor or optionee, licensor or licensee.

Who are the principal owners?

A principal is generally someone who holds a significant stake in a company that manages business activities amongst other owners if there are any. He or she may be a sole, majority or minority owner. The principal could also be someone whose special skills are deemed essential to the company.

Who may a licensee represent client in a real estate transaction?

The licensee can represent you as the seller (Seller's Agent) or represent you as the buyer (Buyer's Agent) and also can assist you as a facilitator.

Who may a licensee represent client or customer in a real estate transaction?

In real estate, a licensee is an individual who has passed a real estate licensing exam and is authorized by the state to represent clients or customers in real estate transactions.

What is an agent who represents both the buyer and the seller in a transaction called?

A disclosed dual agent represents both the buyer and the seller in the same real estate transaction. In such relationships, dual agents owe limited fiduciary duties to both buyer and seller clients.

Who represents both the buyer and seller in the same transaction quizlet?

-A dual agent is a licensee who represents both the seller and the buyer in the same transaction. Dual agency also occurs when two salespersons licensed to the same broker each represent a party in the same transaction.

Which of the following represents the buyer in a transaction?

The buyer's agent represents the buyer only, so the seller may be either unrepresented or represented by another agent. The buyer's agent is responsible for performing the following duties: promoting the interests of the buyer with the utmost good faith, loyalty, and fidelity.

Who represents a lender in a real estate closing transaction?

When there is a loan involved, the lender's attorney must handle the closing. For this reason there will often be three real estate attorneys involved in the sale of property, one representing the buyer, another the seller, and the third representing the mortgage lender.

Who are the principals and who are the agents?

In a principal-agent relationship, one entity authorizes another to perform actions on their behalf. Principals provide instructions to agents and provide them with the agreed compensation. An agent's duties include acting in the principal's best interests and adhering to legal regulations.

Which of the following is a primary duty of the principal to the agent?

A principal's primary duties to his/her agent include: To compensate the agent as agreed; and. To indemnify and protect the agent against claims, liabilities, and expenses incurred in the agent correctly discharging the duties assigned by the principal.

Who is the principal responsible for?

A school principal leads the whole school community, including students, teachers, staff, parents and community partners. They are the liaison between the school and the district leadership. School principals manage the administration of all work related to students, teachers and staff.

What type of real estate agents make the most money?

What is the role of the principal in real estate?

A real estate principal is in charge of the operations of an agency, whether they own it or manage it on behalf of someone else. Also known as a licensed agent or licensee, a principal is vital to an agency because it can't legally operate without one.

What is the difference between a principal and a principle?

A principle is a rule, a law, a guideline, or a fact. A principal is the headmaster of a school or a person who's in charge of certain things in a company.

Can a principal sue an agent?

However, the principal can then turn around and sue the agent to recover any damages caused. In such a scenario, the principal will only be able to recover for the damages caused outside the scope of authority. There are many benefits to hiring agents to carry out functions for your business.

Can an agent be held liable as a principal?

An agent is not generally liable for contracts made; the principal is liable. But the agent will be liable if he is undisclosed or partially disclosed, if the agent lacks authority or exceeds it, or, of course, if the agent entered into the contract in a personal capacity.

What duties does an escrow agent have to all parties in a transaction?

An escrow agent, by definition, safeguards money or assets and enforces escrow agreements in financial transactions – particularly those involving real estate. An escrow agent has a fiduciary duty to both parties involved in the transaction and can only act in accordance with the terms of the agreement.