Agency
Under Montana law, a real estate agent who makes a false statement about a property to induce a buyer to purchase may be liable for:
ANothing if they genuinely believed the statement was true
BMisrepresentation, which may result in license discipline, civil damages, and potentially criminal charges✓ Correct
COnly a refund of their commission
DOnly disciplinary action by their broker
Explanation
Fraudulent or negligent misrepresentation can expose a Montana licensee to license discipline by the MBORR, civil liability for damages (including rescission), and potentially criminal fraud charges in serious cases.
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Key Terms to Know
Agency
A 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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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