California Real Estate Practice Exam

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What may an attorney in fact be authorized to do by a power of attorney?

Only represent the principal in court
Act on behalf of the principal in certain matters
Make all decisions for the principal
Conduct real estate transactions without a license

The correct answer is: Act on behalf of the principal in certain matters

An attorney in fact, also known as a power of attorney, is an individual designated by a principal to make decisions on their behalf. This may include acting on behalf of the principal in certain legal and financial matters, such as entering into contracts or managing bank accounts. Option A is incorrect because an attorney in fact is not usually authorized to represent the principal in court, as that typically requires a licensed attorney. Option C is also incorrect because the power of attorney typically only grants the authority to make decisions in specific areas outlined in the document. Option D is incorrect because conducting real estate transactions may require a license, which an attorney in fact would not necessarily have. Option B is the most accurate because it addresses the general scope of authority granted to an attorney in fact.