Agency
Under North Dakota agency law, a 'gratuitous agent' is one who:
AEarns a very large commission
BActs as an agent without compensation; still owes basic duties but may have reduced liability✓ Correct
CIs a government-appointed agent
DReceives compensation from both parties
Explanation
A gratuitous agent acts without compensation. While they still owe basic duties to the principal, the standard of care expected may differ from a compensated agent, though they remain liable for gross negligence.
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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 DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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.
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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