Question

Who within a brokerage is typically authorized to sign a mutual release in a real estate transaction?

A) The Salesperson directly involved in the transaction.
B) The Broker of Record or the brokerage's manager.
C) Any licensed agent affiliated with the brokerage.

Select the appropriate individual authorized to sign a mutual release based on the provided information:

A only
B only
C only

Answer 1

The person typically authorized to sign a mutual release in a real estate transaction is the Broker of Record or the brokerage's manager, not the salesperson directly involved in the transaction.

Step-by-step explanation:

In a real estate transaction, the Broker of Record or the brokerage's manager is typically authorized to sign a mutual release. A salesperson directly involved in the transaction generally does not have the authority to execute such documents unless specifically granted that power by the brokerage. The appropriate individual authorized to sign a mutual release would be:

• B) The Broker of Record or the brokerage's manager.

This ensures that all legal and contractual obligations are reviewed and handled by a person who holds managerial or executive responsibility within the brokerage and who possesses the appropriate level of authority to bind the brokerage in legal agreements.