Agency
A NC broker who acts as a transaction broker (facilitator) and is asked by one party to help draft the contract should:
APrepare the contract using the standard NC forms✓ Correct
BBe cautious — drafting contract terms may constitute the unauthorized practice of law for a facilitator
CAlways use a custom contract
DRefer the parties to an attorney for all contract drafting
Explanation
Transaction brokers in NC may use approved standard forms (NC Offer to Purchase) to facilitate a transaction; filling in blanks on standard forms is generally acceptable, but drafting custom contract language may constitute the unauthorized practice of law.
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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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