Agency
In Maine, a licensee who has a personal financial interest in a property transaction must:
AImmediately withdraw from the transaction
BDisclose the conflict of interest to all parties✓ Correct
CRefer all clients to competing brokers
DObtain MREC approval before proceeding
Explanation
Maine license law requires a licensee who has a personal financial interest (or relationship with a party that could affect judgment) to disclose that interest to all parties in the transaction.
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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.
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.
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.
State-Specific Concepts
License Law
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