Oregon 30-Hour Real Estate Law Practice Test

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

1. Seller agency

2. Buyer agency

3. Co-agency

4. Open agency

The correct answer is: Buyer agency

Hanna has a buyer agency relationship with her client, which signifies that she represents the interests of the buyer in real estate transactions. In this type of agency, Hanna is obligated to advocate for her client's best interests, which includes providing guidance on property choices, negotiating offers, and offering insights on pricing and market conditions. In a buyer agency relationship, Hanna assumes a fiduciary duty to her client, meaning that she must prioritize her client's interests above her own and disclose any relevant information that could affect the client's decisions. This relationship is structured to ensure that the buyer receives advice that is solely focused on their needs and objectives during the home-buying process. The other types of agency relationships listed differ significantly in their focus and responsibilities. Seller agency, for example, would involve representing the seller in the sale of property, while co-agency suggests a dual representation which typically involves both buyer and seller—this would not apply if Hanna is strictly representing the buyer. Open agency implies a non-exclusive agreement where the buyer can work with multiple agents, which again would not reflect Hanna’s dedicated representation as a buyer's agent. Thus, the designation of buyer agency is accurate in this context.