An agent who acts beyond the scope of their authority may be liable for:
Why Breach of fiduciary duty Is Correct
Answer B: Breach of fiduciary duty
Exam Tip: Agency
Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.
Key Agency Terms in This Question
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- An agent who acts beyond the scope of their authority without the principal's consent may expose themselves to liability for:Agency
- Which of the following is NOT a fiduciary duty an agent owes to their principal?Agency
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- An agent who secretly purchases a listing from their own seller without disclosure has violated which fiduciary duty?Agency
- Under California law, a real estate broker may be held liable for the acts of their salespersons under the doctrine of:DRE & Licensing
Key Terms to Know
The 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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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