1. Which of the following represents a principal-agent relationship? a. A real estate agent and the broker of record b. The seller of a listed property and a buyer c. A listing agent and selling agent d. A broker of one office bringing an offer to the broker of another office The broker-agent relationship clearly defines agency. The broker is the principal who empowers the agent to act on his behalf to sell the office listings and procure listings for their customers. The agent must always act in the brokers best interest. The best way to remember agency is: do you work with someone or for someone? You work for your broker - you work with your fellow agents. To whom do you owe a fiduciary duty? And remember, if not a principal, the person you work with still deserves fair and honest treatment. 2. You have a listing and the activity has been slow. The seller tells you that he really needs to sell, so is open to negotiation. An agent from ABC Realty calls you and has some interested buyers but their price range is lower than the seller is asking. She wants to know the seller's motivation and if he is flexible on his price. What should you do? a. Tell the agent yes because you and the seller both need the deal. b. Repeat the conversation to the seller and ask for his input. c. As the principal in this situation you can do what it takes to close the deal. d. Tell the agent the buyers will have to offer full price and hope for the best. You should always discuss any information you have regarding a buyer's inquiry or an offer with the seller before responding. It is the seller's decision to make on how to respond to a buyer. A real estate salesperson is to provide guidance and assistance. The seller is the principal and you have a fiduciary responsibility to deal with them honestly and fairly with their best interests at the forefront. You would never instruct the cooperating agent to give the buyers direction without first consulting the seller. The agent should show the property and if interested, the buyers make their best offer. 3. The broker owes fiduciary duty to which of the following? a. A seller who listed his home with the broker. b. The salesperson working under the broker who sells that listing. c. The buyer of the property. d. All of the above. The broker has a fiduciary responsibility to the seller, who has