Maine License Law
When a Maine licensee participates in a transaction where they have an undisclosed financial interest, they may face:
ANo penalty if the transaction closes at market value
BLicense discipline, civil liability for any undisclosed profits, and potential criminal fraud charges✓ Correct
COnly a written warning for a first offense
DOnly mandatory ethics training
Explanation
Failure to disclose a personal financial interest in a transaction is a serious violation of Maine license law and fiduciary duties, potentially resulting in license discipline, disgorgement of undisclosed profits, civil liability, and criminal fraud charges.
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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.
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.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Math Concepts
State-Specific Concepts
License Law
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