Question

Howard wants to purchase a vacation property. He decides to use the expertise of a real estate professional. One of his business associates recommends Jose. Howard explains to Jose that he wants Jose to only represent his purchasing interest, and a contract is signed. Who is the agent? Who is the principal? What is their relationship? What is Jose's role?

A) Jose is the agent; Howard is the principal; they have an agency relationship; Jose is a special agent.
B) Jose is the principal; Howard is the agent; they have a third party relationship; Jose is a broker.
C) Jose is the agent; Howard is the principal; they have a fiduciary relationship; Jose is a special agent.
D) Both A and C

Answer 1

The correct answer is A) Jose is the agent; Howard is the principal; they have an agency relationship; Jose is a special agent.

Step-by-step explanation:

The correct answer is A) Jose is the agent; Howard is the principal; they have an agency relationship; Jose is a special agent.

In this scenario, Howard is the principal, which means he is the person who hires and authorizes Jose to act on his behalf. Jose is the agent, who represents Howard's interests in purchasing a vacation property. They have an agency relationship, where Jose is obligated to act in Howard's best interests.

As a special agent, Jose has limited authority and is only authorized to perform specific tasks related to the purchase of the vacation property.