Agency
A seller's agent who also acts as a mortgage loan originator for the same buyer in the same transaction would most likely violate:
AOnly the Real Estate Settlement Procedures Act (RESPA)
BRESPA and potentially fiduciary duties through an undisclosed conflict of interest✓ Correct
CThe Arkansas Residential Landlord-Tenant Act
DNo law, as long as the agent is licensed in both fields
Explanation
Acting as both the seller's agent and the buyer's mortgage originator creates a severe conflict of interest and may violate RESPA's anti-kickback provisions as well as the agent's fiduciary duties if not properly disclosed and consented to.
Related Arkansas Agency Questions
- Which of the following actions by a buyer's agent is an example of a breach of fiduciary duty?
- What does it mean when a listing agent is said to have an 'exclusive' agency relationship with the seller?
- When a real estate agent is found to have an undisclosed interest in a transaction, the principal may:
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- Stigmatized property refers to a property that:
- A seller's agent who fails to disclose that the subject property is in a flood zone to a buyer may be liable for:
- An agency by estoppel arises when:
- An agent who has NOT been hired by a buyer but nonetheless acts in ways that create a reasonable belief of representation is an example of:
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