Leasing License Practice Exam

Under what circumstance should a "Notice of No Agency" form be utilized?

1. When representing the tenant only

2. When representing the landlord/owner

3. When there is no rental agreement

4. When the property is being sold

The correct answer is: When representing the landlord/owner

The "Notice of No Agency" form is utilized specifically in situations where a real estate professional is representing the landlord or property owner. This form serves to clarify to tenants that the professional does not have an agency relationship with them. In essence, it protects the landlord's interests by making clear that the agent's duties and obligations are solely to the landlord, and not to the tenant. This is crucial in maintaining transparency and ensuring that tenants understand the boundaries of representation during the leasing process. In the context of the other circumstances, the other options do not align with the need for a "Notice of No Agency." For instance, representing a tenant would typically involve an agency relationship, which would negate the need for this form. Similarly, if there is no rental agreement or when a property is being sold, the dynamics of agency representation differ, and thus, the standard expectations around agency relationships would not apply in the same way. This makes understanding the specific role and obligations of the real estate professional essential when determining when to use the "Notice of No Agency."