Agency
A listing agent has a personal financial interest in a title company and routinely recommends it to sellers without disclosure. This creates:
AA standard referral arrangement with no ethical concern
BA conflict of interest requiring disclosure under RESPA and fiduciary duty principles✓ Correct
CNo issue since the seller is free to choose any title company
DOnly an issue if the title company's fees are above average
Explanation
Under RESPA and fiduciary duty principles, agents who have financial interests in service providers they recommend must disclose these interests. Failing to disclose creates a conflict and may also violate RESPA's anti-kickback provisions.
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