medium · National Real Estate Exam agency
An agent receives a 'stop work' order from the city regarding a construction project on the principal's land. The agent loses the letter and never tells the principal. The principal continues building and is hit with massive fines.
Who is legally responsible for the 'notice' of the order?
- The city alone is responsible for failing to confirm that the principal personally signed for the delivered notice from the city.
- The notice is void because the 'imputed notice' doctrine legally only applies to real estate sales transactions, never to construction matters.
- The principal is responsible because the city fulfilled its duty of notice by delivering the order to the principal's authorized agent.
- The agent alone bears full responsibility for the resulting fines, since only the agent physically lost the original document sent by the city clerk.
Sign up free to see the explanation and track your rank →
More National Real Estate Exam agency practice
- If a broker's trust account contains earnest money for ten different transactions, and the
- An agency relationship that is created by a principal's actions leading a third party to r
- An agent's power to bind a principal to a contract is known as their:
- If a broker acts as a transaction coordinator (facilitator) and does not represent either
- If a person acts as an agent without prior authorization and the principal later accepts t
- If a seller instructs an agent to hide a known material defect in the property, the agent
- In a standard real estate transaction, to whom does the agent owe the full range of fiduci
- In which type of agency creation does the principal's silence or failure to object play a