North Carolina Post Licensing 301 Practice Exam

In a real estate transaction, the firm acts as the actual agent to the principal. This means that the firm is responsible for representing the interests of the principal, whether it is a buyer or a seller, in negotiations and contractual agreements. The firm's licensed agents are authorized to act on behalf of the principal, ensuring that the principal's needs and objectives are met throughout the transaction process.

The firm's role encompasses various responsibilities, such as providing market analysis, promoting listings, facilitating communication, and ensuring compliance with applicable laws and regulations. By establishing a fiduciary relationship with the principal, the firm is held to a high standard of care and loyalty, which involves prioritizing the principal's interests above all others in the transaction.

In this context, while the buyer agent plays an essential role in representing the interests of the buyer specifically, it is the firm as a whole that holds the legal responsibility as the agent. Similarly, an attorney may provide legal advice and assistance, but they do not function as the agent in a real estate transaction unless specifically designated as such. The seller, on the other hand, is the principal in the transaction but does not act as an agent themselves. Therefore, the firm is the correct answer as it embodies the formal representation of the principal in