Oregon 30-Hour Real Estate Law Practice Test

What type of agency relationship does Orla have with her client?

1. Buyer agency

2. Seller agency

3. Dual agency

4. Transactional agency

The correct answer is: Seller agency

In the context of real estate, the type of agency relationship Orla has with her client as a seller agency signifies that she is representing the interests of the seller in a transaction. This relationship establishes a fiduciary duty, where Orla is obligated to act in the best interests of her client, the seller, throughout the process of listing, marketing, and ultimately selling the property. In seller agency, the agent's responsibilities include pricing the property appropriately, advising on how to enhance the property's appeal, marketing the property to potential buyers, and negotiating offers. The seller agency also clarifies that the agent cannot disclose certain confidential information about the seller to potential buyers unless authorized to do so. Understanding this relationship is critical in real estate transactions, as it delineates the obligations and responsibilities of the agent towards their client. In contrast to other types of agency relationships, such as buyer agency, dual agency, and transactional agency, seller agency specifically focuses on working to ensure the seller's needs and objectives are prioritized during the sale process.