California Real Estate Broker ExaminationAgencyEasy
A tenant contacts a real estate agent to help them find a suitable commercial space for their new business. The agent researches available properties, arranges showings, and assists the tenant in negotiating lease terms. This relationship is best described as:
- ATransaction Brokerage
- BSeller Representation
- CLandlord Representation
- DTenant Representation
Show answer & explanationAnswer & explanation
Correct answer: D. Tenant Representation
Tenant representation occurs when a real estate agent acts as an advocate for a tenant in a lease transaction, assisting them in finding suitable properties and negotiating favorable lease terms. The agent's fiduciary duties are owed to the tenant.
Why the other options are wrong
- A. Transaction brokerage is a non-agency relationship where the broker facilitates a transaction without representing either party as a fiduciary (not typically recognized in California).
- B. Seller representation involves the agent working for the seller to sell a property.
- C. Landlord representation involves the agent working for the landlord to find tenants.
Tenant Representation
An agency relationship where a real estate agent represents the interests of a tenant, assisting them in finding and leasing suitable properties, and negotiating the best possible lease terms.
- Agent's principal is the tenant
- Fiduciary duties owed to the tenant
- Common in commercial and residential leasing
- Agent helps identify needs, locate properties, and negotiate
Memory trick: Who's the agent serving? That's the core of the agency's naming.