Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

In a real estate negotiation, who does the agent primarily represent?

1. The third party involved in the transaction

2. The principal who authorized the agent

3. The client seeking assistance in transactions

4. Both the principal and third party equally

The correct answer is: The principal who authorized the agent

The primary role of an agent in real estate negotiations is to represent the principal who authorized them. This principal is typically the client who has engaged the agent's services, which can include property sellers or buyers. The agent has a fiduciary duty to act in the best interest of this client, meaning they must prioritize the client's needs, preferences, and goals during the negotiation process. The relationship established between the agent and the principal creates a legal and ethical duty for the agent to advocate on behalf of the principal, ensuring that their interests are safeguarded throughout the transaction. While agents may interact with other parties in the negotiation, their primary responsibility remains with the client who has authorized and employed their services. This distinction emphasizes the importance of trust and loyalty in the client-agent relationship, as the agent is expected to provide guidance, strategies, and representation that align with the client's objectives and best interests.