Michigan License Law Practice Test

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Prepare for the Michigan License Law Test. Master key concepts with flashcards and multiple-choice questions, each offering hints and explanations. Ace your exam!

Practice this question and more.

Which of the following describes a relationship that is NOT considered an agency relationship?

Between a broker and a seller
Between a rental property owner and a tenant
Between a buyer and a real estate agent
Between an investor and a property manager

The correct answer is: Between a rental property owner and a tenant

The relationship between a rental property owner and a tenant is not classified as an agency relationship. In an agency relationship, one party (the agent) has the authority to act on behalf of another party (the principal), typically in negotiations or transactions. In the case of a rental property owner and a tenant, the tenant occupies the property and typically pays rent to the owner; this relationship is defined by the lease agreement rather than an agency authority. The tenant does not have the power to represent the landlord in transactions or decisions regarding the property; therefore, it lacks the key characteristics of an agency relationship. In contrast, the other provided scenarios involve relationships where one party acts on behalf of another, which is the essence of an agency. A broker representing a seller, a buyer working with a real estate agent, and an investor enlisting a property manager all involve scenarios where one party has the authority or responsibility to act in the interest of the other, thereby establishing an agency relationship.