Oregon 30-Hour Real Estate Law Practice Test

On what factor is the agency relationship with Kevin based?

1. Kevin's intention to sell the property

2. The signed listing agreement

3. Ji-eun's representation of the buyers

4. The size of the commission being offered

The correct answer is: The signed listing agreement

The agency relationship with Kevin is based on the signed listing agreement. This agreement serves as a formal contract that establishes the duties and obligations of the real estate agent towards Kevin, the seller. It outlines the scope of the agency, including the agent's authority to represent Kevin in the sale of his property and the specific terms under which the agent will operate. A signed listing agreement is essential in real estate transactions as it not only defines the relationship but also helps protect the interests of both the agent and the seller. It typically includes important details such as the property description, listing price, terms of sale, and duration of the agreement. By having this agreement in place, there is a clear legal foundation for the agency relationship, ensuring that both parties understand their rights and responsibilities. While Kevin's intention to sell the property, Ji-eun's representation of the buyers, and the size of the commission may all play a role in the real estate process, none of these factors establish the agency relationship. Without the signed listing agreement, there would be no formal representation, making it the cornerstone of the agency relationship in this context.