Agency
In NC, an agent's duty of 'loyalty' is breached when the agent:
APresents multiple offers to the seller on the same day
BPlaces their own interests or a third party's interests above the client's✓ Correct
CDiscloses a material defect to a buyer
DRefers the client to a qualified home inspector
Explanation
The duty of loyalty requires the agent to place the client's interests first. Self-dealing, steering clients to generate higher commissions, or favoring another party over the client violates this duty.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
SteeringAn illegal practice where a real estate agent directs buyers toward or away from certain neighborhoods based on the buyer's race, religion, national origin, or other protected characteristics.
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.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Math Concepts
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