What Is Agency?
A legal relationship in which one party (the agent, such as a real estate salesperson) is authorized to act on behalf of another party (the principal or client) in dealings with third parties.
Agency across 7 exams
Agency appears on the following exams. Each defines it in the context candidates are tested on:
- Real Estate
- A legal relationship in which one party (the agent, such as a real estate salesperson) is authorized to act on behalf of another party (the principal or client) in dealings with third parties.
- CA Salesperson
- The legal relationship in which one party (the agent) is authorized to act on behalf of and represent another party (the principal) in dealings with third parties. In real estate, agency defines whom the agent represents in a transaction.
- TX Broker
- The relationship in which a broker (the agent) is authorized to represent a principal — such as a buyer or seller — in a real estate transaction. Understanding how agency is created, disclosed, and terminated is central to the exam.
- TX Sales Agent
- The relationship created when a client authorizes a licensee to act on their behalf in a real estate transaction, giving rise to the duties owed to that client.
- CA Broker
- The legal relationship in which one party (the agent) is authorized to act on behalf of another (the principal) in dealings with third parties.
- AZ Salesperson
- The fiduciary relationship in which a licensee (the agent) is authorized to act on behalf of a client (the principal). It creates legal duties such as loyalty, confidentiality, and full disclosure owed to the client.
- IL Broker
- The relationship in which one party (the agent) is authorized to act on behalf of another (the principal) in dealings with third parties. In real estate, agency defines whom the broker represents and the duties owed.