1. Who is considered the Principal in a real estate relationship? Define ‘agency

1. Who is considered the Principal in a real estate relationship? Define ‘agency’ as according to the California Civil Code. Explain what is a Fiduciary Relationship, how is it created and how does it obligate the agent?
2. Name and ‘Define’ the 3 ways a real estate agency is created, be specific. Which one of the three is the most common?
3. Explain the difference between an independent contractor and an employee of a real estate office.
4. Can a real estate agent represent both the buyer and seller on the same transaction at the same time? Why or why not? Name three occasions when the Disclosure Regarding Real Estate Agency Relationships Form must be completed.
5. Define what is a “Trust Account’ ? Define what is ‘commingling’ ? What three (3) choices does a real estate agent have to make with a buyer’s deposit within 3 business days (if the buyer did not ask to have the check held uncashed)?
Note: Please number your responses to match the questions.