California Real Estate Practice Exam

A broker who is acting both as principal and agent may be exercising what kind of agreement?

1. Dual agency agreement

2. Exclusive right to sell listing agreement

3. Option listing agreement

4. Open listing agreement

The correct answer is: Option listing agreement

When a broker is acting as both principal and agent, they are essentially agreeing to a dual agency agreement. Dual agency means the broker is representing both the buyer and seller in a transaction. Option listing agreement, on the other hand, allows the broker to have the option to purchase the property at a certain price before it is put on the market. Exclusive right to sell listing agreement gives the broker the exclusive right to sell the property, but they are not acting as a principal and agent. Open listing agreement allows the seller to work with multiple brokers to sell their property. None of these options fully capture the concept of a broker acting as both principal and agent, making option listing agreement the correct answer.