Agency
An agent in New Mexico who makes a material misrepresentation to a buyer may be liable for:
AA licensing fee only
BFraud, misrepresentation, and possibly loss of their license✓ Correct
CNo liability if acting in good faith
DOnly administrative penalties from the NMREC
Explanation
A material misrepresentation may constitute fraud, exposing the agent to civil liability (rescission, damages) and administrative discipline including license revocation.
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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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