Broker Steve can act for his client as a general agent?

Prepare for the VanEd National Real Estate Exam. Study with interactive quizzes and detailed explanations. Get ready to ace your test with confidence!

A broker can act as a general agent for a client primarily through written instruction. This formal documentation outlines the scope of the broker's authority to act on behalf of the client in various transactions. A written agreement provides clear expectations and serves as proof of the relationship established between the broker and the client.

In real estate, a general agent has broad authority to represent the client in many transactions, unlike a special agent, who has limited powers. The written instruction helps ensure both parties are aware of the extent of the broker's authority, safeguarding against misunderstandings or disputes regarding the agent's actions on behalf of the client.

Verbal agreements, while they may establish some level of relationship, lack the concrete evidence and clarity provided by written instructions. Client consent is essential, but it can be achieved through various means, and written documentation is the most secure and professional way to formalize that consent. Automatic action upon hire does not typically grant the broad powers associated with a general agency; rather, it needs to be specifically defined through written instruction.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy