Leasing License Practice Exam

What is a key feature of the "Notice of No Agency" form?

1. It indicates the agent is representing both parties

2. It indicates no agency relationship is established

3. It confirms the rental price

4. It states the conditions of the property

The correct answer is: It indicates no agency relationship is established

The "Notice of No Agency" form is designed to clarify the relationship between the parties involved in a real estate transaction. A key feature of this form is that it clearly indicates that no agency relationship is established between the agent and the parties. This means that the agent does not owe fiduciary duties to either party in the transaction, which can include responsibilities such as loyalty, care, and full disclosure. In transactions where the "Notice of No Agency" is utilized, it serves to protect both the agent and the parties by ensuring that all parties understand that the agent is not acting on behalf of either side. This can prevent misunderstandings or assumptions about the nature of the agent's role in the transaction. The other options do not accurately reflect the purpose of the "Notice of No Agency." An agent representing both parties would indicate an agency relationship, confirming the rental price relates to the terms of the lease rather than agency status, and stating conditions of the property focuses on specifics unrelated to agency. Thus, the form's primary function is to affirm the absence of agency, making the second choice the correct one.