Difficulty: Easy

Average Score: 82%

An attorney-in-fact acting without compensation in a real estate transaction MUST

Rationale

Have written authority of the principal.

An attorney-in-fact must possess written authority from the principal to act on their behalf in a real estate transaction. This legal document, often referred to as a power of attorney, grants the attorney-in-fact the power to make decisions and execute documents related to the transaction.

A (Have a real estate license) YOUR ANSWER

While a real estate license is typically required for professionals who are compensated for real estate transactions, an attorney-in-fact acting without compensation is not required to hold such a license. The role of an attorney-in-fact is fundamentally about acting in accordance with the principal's wishes, not about obtaining licensure.

B (Be an attorney-at-law) YOUR ANSWER

An attorney-in-fact does not need to be an attorney-at-law; they can be any individual designated by the principal to act on their behalf. The essential requirement is the written authority from the principal, not a legal qualification, making this option incorrect.

C (Be related to a principal in the transaction) YOUR ANSWER

There is no legal requirement for the attorney-in-fact to be related to the principal. Individuals can appoint anyone they trust to act as their attorney-in-fact, regardless of their familial relationship. This choice does not reflect the necessary criteria for acting as an attorney-in-fact.

Conclusion

In a real estate transaction, an attorney-in-fact must have written authority from the principal to ensure they are acting within the bounds of the law. This authority is crucial for validating their actions and decisions on behalf of the principal. Other options, such as being a licensed real estate agent, an attorney-at-law, or a relative, do not fulfill the legal requirements for this role.

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