Agency
An agent's duty of accounting requires the agent to:
AFile annual tax returns on behalf of the client
BAccurately report and account for all client funds and property entrusted to the agent✓ Correct
CAudit the seller's financial statements before listing
DMaintain the client's bank accounts
Explanation
The fiduciary duty of accounting requires an agent to properly account for all money and property received on behalf of the client, maintaining accurate records and providing an accounting when requested.
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Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
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