In NC, a buyer who submits an offer and pays an earnest money check, but no written buyer agency agreement has been signed, has implicitly established what type of relationship?
Why A customer relationship — without a written agency agreement, the buyer may be treated as a customer unless implied agency is established by conduct Is Correct
Answer B: A customer relationship — without a written agency agreement, the buyer may be treated as a customer unless implied agency is established by conduct
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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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- Under NC law, an agency relationship created through the conduct of the parties (rather than a written agreement) is called:Agency
- A North Carolina broker who provides services to a buyer without a written buyer agency agreement is acting as:Agency
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- A NC broker who deposits a client's earnest money check into their personal account instead of a trust account has committed:North Carolina License Law
- Under the North Carolina Offer to Purchase, the earnest money deposit (EMD) is:Contracts
- In NC, a 'buyer agency agreement' is a written contract between the buyer and:Agency
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- Under NC license law, a broker must provide a written agency agreement before performing which service?North Carolina License Law
Key Terms to Know
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
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