AgencyIntermediateNorth Carolina Exam

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

AFiduciary duties including confidentiality and loyalty

BHonesty, fairness, and disclosure of material factsCorrect

CThe same duties owed to the seller

DNo duties whatsoever

Why Honesty, fairness, and disclosure of material facts Is Correct

Answer B: Honesty, fairness, and disclosure of material facts

NC seller's agents owe unrepresented buyers honesty, fairness, and disclosure of material facts about the property, but do not owe fiduciary duties.

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

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.

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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