Agency
A Nebraska agent who discovers their seller-client is involved in mortgage fraud should:
AContinue representing the seller confidentially
BWithdraw from representation and potentially report to authorities✓ Correct
COnly advise the seller to stop the fraud
DRemain neutral as the fraud is not the agent's concern
Explanation
An agent cannot continue to assist or represent a client engaged in fraud. Withdrawal is mandatory.
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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.
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