Agency
Under NH agency law, a 'gratuitous agent' (one who acts without compensation) owes:
ANo duties since they are not paid
BThe same duties as a compensated agent once they undertake the agency✓ Correct
COnly the duty of honesty
DDuties only to third parties, not the principal
Explanation
Once an agency relationship is established, a gratuitous agent owes the same duties to the principal as a compensated agent—including loyalty, care, and disclosure. The lack of compensation does not reduce the agent's obligations once they have agreed to act.
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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.
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.
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