Oregon 30-Hour Real Estate Law Practice Test

In a situation with Randy, who is considered his client?

1. The buyer (Tim)

2. The seller (Brent)

3. Both the buyer and seller

4. Neither; he is acting as a facilitator

The correct answer is: The seller (Brent)

In real estate transactions, a real estate agent typically represents the interests of one party in the transaction, known as the client. In Randy's situation, if he is acting as the agent for the seller, Brent, then Brent is clearly the client. This means that Randy has a fiduciary duty to act in the best interests of Brent, providing him with guidance, advocating for his needs, and ensuring that he is informed throughout the process. Understanding why Randy is not the representative for Tim, the buyer, is important. If Randy were to represent both parties, he would have to disclose this dual agency and ensure that he does not favor one party over the other. However, since the question designates Brent as the client, it reaffirms that Randy is solely representing the seller's interests. The option suggesting that Randy is acting as a facilitator also clarifies that he is not functioning in a neutral capacity, which would mean he is not a client representative. Facilitators do not have a fiduciary duty to either party, so this would not apply to the situation where a clear client relationship with Brent exists. The emphasis here is on the specific and defined role an agent plays, which, in this case, is representing the seller.