Agency
In Rhode Island, what is 'agency coupled with an obligation'?
AAn agency where the agent must disclose all conflicts
BAn agency arrangement where the agent's authority is coupled with a duty the agent has undertaken, making the relationship more formal and binding✓ Correct
CA buyer agency requiring a written contract
DA seller agency requiring the agent to advertise the property
Explanation
In practice, most real estate agency relationships come with duties (obligations) that the agent has undertaken in the agency agreement. The formal duties (fiduciary obligations) make the relationship binding and enforceable.
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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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
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