A NC agent who advises their buyer client to offer a lower price because the seller needs to sell quickly — using seller motivation information the agent gained as a transaction facilitator — has violated the duty of:
Why Confidentiality owed to the seller in a dual agency situation Is Correct
Answer B: Confidentiality owed to the seller in a dual agency situation
Exam Tip: Agency
Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.
Key Agency Terms in This Question
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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
People Also Study
Related North Carolina Questions
- An agent who discloses their client's minimum acceptable price to the other party without authorization has violated the duty of:Agency
- Under North Carolina agency law, an agent's duty of confidentiality to the client:Agency
- A NC buyer's agent who fails to disclose a known material defect because the seller is also a client (in a dual agency) has violated:Agency
- A NC seller's agent who voluntarily discloses to the buyer that the seller is desperate to sell quickly (under financial pressure) has violated the duty of:Agency
- If a NC broker accepts an offer on behalf of the seller but does not promptly notify the seller, this violates the fiduciary duty of:North Carolina License Law
- A broker in NC who represents both a buyer and seller and fails to disclose this dual agency relationship prior to entering into a binding contract has violated:North Carolina License Law
- A NC seller who receives an offer during the due diligence period with a contingency to sell their current home is encountering which type of provision?Contracts
Key Terms to Know
A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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.
Math Concepts
Study This Topic
Practice More North Carolina Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →