Agency
A Missouri buyer's agent who recommends a service provider (e.g., lender, inspector) in which the agent has a financial interest must:
ANever recommend any service providers
BDisclose the financial interest to the buyer✓ Correct
COnly disclose if the buyer asks
DRecommend only providers who pay referral fees
Explanation
Missouri agents must disclose any financial relationships with recommended service providers. Failure to disclose referral fees or financial interests violates fiduciary duties and RESPA (for federally related transactions).
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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.
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.
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.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
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