AgencyIntermediateNorth Carolina Exam

In North Carolina, a seller's agent owes which duties to the buyer?

AFull fiduciary duties including undivided loyalty, under typical circumstances

BOnly the duty of confidentiality

CHonesty and fairness, disclosure of material facts, and accounting for moneyCorrect

DNo duties whatsoever

Why Honesty and fairness, disclosure of material facts, and accounting for money Is Correct

Answer C: Honesty and fairness, disclosure of material facts, and accounting for money

Under NC agency law, a seller's agent owes the buyer (as a customer) honesty, fairness, disclosure of material facts affecting the property's value or desirability, and proper accounting for any money held.

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

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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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.

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.

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.

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Agency Law Guide

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