AgencyIntermediateNorth Carolina Exam

Under North Carolina agency law, an agent's duty of confidentiality to the client:

AEnds when the transaction closes

BEnds when the listing expires

CContinues even after the agency relationship terminatesCorrect

DOnly applies during active negotiations, as a general rule

Why Continues even after the agency relationship terminates Is Correct

Answer C: Continues even after the agency relationship terminates

In NC, the duty of confidentiality survives termination of the agency relationship. A broker may not disclose confidential client information even after the transaction is complete.

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.

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.

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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.

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.

Dual Agency

A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same 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.

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Agency Law Guide

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