AgencyIntermediateNorth Carolina Exam

A subagent in North Carolina real estate owes fiduciary duties to:

AThe buyer they are directly assisting, as is typical in most transactions

BThe original principal (typically the seller) through the listing brokerCorrect

CBoth parties equally

DOnly the NCREC

Why The original principal (typically the seller) through the listing broker Is Correct

Answer B: The original principal (typically the seller) through the listing broker

A subagent is the agent of the listing broker's principal (the seller) and owes the same fiduciary duties to the seller as the listing broker.

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.

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Key Terms to Know

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.

Fiduciary Duty

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.

Buyer's Agent

A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

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Agency Law Guide

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