Agency Law and Fiduciary Duties Flashcards

A buyer's agent who also represents the seller in the same transaction without both parties' written consent is guilty of:

Answer: Undisclosed dual agency

Undisclosed dual agency is illegal because it violates the agent's fiduciary duty of loyalty to both clients without their knowledge.

Which fiduciary duty requires an agent to place the client's interests above their own personal gain?

Answer: Loyalty

Loyalty requires the agent to prioritize the client's interests over all others, including the agent's own financial benefit.

When a seller's agent learns that the seller is going through a divorce and must sell quickly, this information is:

Answer: Confidential and must not be disclosed without seller's permission

The seller's personal motivation to sell quickly is confidential information that the agent must protect under the duty of confidentiality.

A real estate agent who represents the buyer is called a:

Answer: Buyer's agent

A buyer's agent exclusively represents the buyer's interests and owes fiduciary duties to the buyer.

Under the duty of accounting, a real estate agent must:

Answer: Keep accurate records of all client funds and property

The duty of accounting requires agents to safeguard and properly account for all money and property entrusted to them by clients.

A listing agent who fails to present a buyer's offer to the seller because the agent thinks it is too low has violated the duty of:

Answer: Obedience

The duty of obedience requires the agent to present all offers to the seller unless the seller has given specific written instructions otherwise.

Which of the following best describes a transaction broker (facilitator)?

Answer: Assists both parties without representing either

A transaction broker provides limited representation services to both parties without acting as a fiduciary for either side.