Agency
A Florida real estate agent recommends a specific home inspector to their buyer client. If the agent has a business relationship or financial interest in the inspection company, the agent must:
ARefuse to make any recommendation
BDisclose the relationship to the buyer✓ Correct
COnly make the recommendation in writing
DGet FREC approval before making a referral
Explanation
A Florida agent who has a financial interest or business relationship with a vendor they recommend (inspector, contractor, title company) must disclose that relationship to the client. Failure to disclose could constitute a conflict of interest and violate fiduciary duties.
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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.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
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.
State-Specific Concepts
FREC Regulation
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