Agency
In Rhode Island, what is the consequence of a buyer's agent who purchases a property without disclosing their agent status to the seller?
ANo consequence if the price was fair
BIt is a breach of fiduciary duty and may constitute fraud; the agent may face license discipline, civil liability, and the transaction may be voidable✓ Correct
COnly a warning from the DBR
DNo consequence because the agent is acting as a principal
Explanation
A licensee who purchases property without disclosing their licensed status breaches their fiduciary duty (even as a buyer, they must disclose their status to the seller). This can result in license discipline, civil liability, and potentially rescission of the transaction.
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