Agency
A Maine buyer's agent who discovers their client has made misrepresentations on a mortgage application should:
AHelp the client conceal the misrepresentations
BAdvise the client to correct the misrepresentations and potentially withdraw if the client refuses✓ Correct
CContinue representing the client as mortgage issues are the lender's problem
DSimply note it in their file and proceed
Explanation
An agent cannot assist or participate in mortgage fraud. If a buyer has made misrepresentations on a mortgage application, the agent must advise correction and may need to withdraw from the representation if the client refuses.
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Key Terms to Know
Buyer's Agent
A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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.
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