Agency
A Mississippi buyer's agent learns mid-transaction that the buyer intends to flip the property immediately after purchase by misrepresenting to the seller that they will owner-occupy it. The agent should:
AContinue representing the buyer since it is not the agent's business
BAdvise the buyer that misrepresenting intended use may constitute fraud, refuse to assist with the deception, and potentially withdraw from representing the buyer if they insist on the fraudulent plan✓ Correct
CDisclose the buyer's plan to the seller immediately
DReport the buyer to MREC
Explanation
An agent cannot assist a client in committing fraud. The agent should advise the buyer that misrepresenting intended occupancy to obtain better contract terms constitutes fraud, refuse to participate, and withdraw from representation if the buyer insists. Facilitating fraud exposes both the buyer and agent to civil and potentially criminal liability.
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