Agency
When a real estate agent is found to have an undisclosed interest in a transaction, the principal may:
ADo nothing, since the transaction already closed
BVoid the transaction and/or seek damages✓ Correct
COnly file a complaint with AREC
DOnly seek a reduced commission
Explanation
If an agent has an undisclosed conflict of interest (e.g.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Math Concepts
State-Specific Concepts
AREC Regulation
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