Agency
Under Kentucky law, a seller's agent who discovers after the listing agreement is signed that the seller is engaged in mortgage fraud should:
AContinue to represent the seller to protect their confidentiality
BImmediately disclose the fraud to all parties and the appropriate authorities✓ Correct
COnly continue the listing if the fraud does not involve the listed property
DWithdraw from the representation without disclosing why
Explanation
An agent who discovers ongoing mortgage fraud cannot continue to assist in the fraud. The agent should withdraw from the representation and report the fraud to appropriate authorities, as participating in fraud supersedes confidentiality duties.
Related Kentucky Agency Questions
- A Kentucky buyer's agent discovers during due diligence that the property has a cracked foundation not mentioned in the seller's disclosure. The agent must:
- A Kentucky seller fires their listing agent but wants to keep the listing agreement in effect with a different agent at the same brokerage. The seller may:
- In a Kentucky transaction, a licensee who provides services to both parties without representing either as a fiduciary is acting as a:
- In Kentucky, a seller who misrepresents the condition of their property to the buyer may be liable to:
- Under Kentucky law, a material fact that a seller's agent must disclose to buyers includes:
- In Kentucky, a principal can be held responsible for the acts of their agent when:
- A Kentucky buyer's agent who also owns a property the buyer wants to purchase must:
- In Kentucky designated agency, the broker who oversees both the designated buyer's agent and the designated seller's agent must:
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →