California Real Estate Practice Exam

For which activity would the broker not require specific authority from the principal?

1. To sign contracts on behalf of the principal

2. To negotiate sale prices

3. To use the services of an administrative assistant to prepare the sales brochure for the house

4. To amend listing prices without prior consultation

The correct answer is: To use the services of an administrative assistant to prepare the sales brochure for the house

A broker does not require specific authority from the principal to use the services of an administrative assistant to prepare the sales brochure for the house because this is considered an administrative task rather than a decision-making or legally-binding activity. Options A, B, and D all involve actions that require specific authority from the principal, as they directly impact the sale and/or representation of the property. For example, signing contracts on behalf of the principal requires the broker to have explicit permission and understanding of the terms outlined in the contract. Negotiating sale prices also requires authorization from the principal in order to accurately represent their interests and make decisions on their behalf. Similarly, amending listing prices without prior consultation with the principal can have significant effects on the sale of the property and should be done with their explicit approval. In contrast, using the services of an administrative assistant to prepare the sales brochure does not involve decision-making or legally-binding actions and therefore does not require specific authority from the principal.