Contracts
In South Dakota, an agent who writes a contract provision that they know is illegal is potentially:
AProtected if the provision was requested by the client
BLiable for damages and subject to SDREC discipline✓ Correct
CExempt from liability if they disclosed it was potentially illegal
DProtected as long as both parties signed voluntarily
Explanation
Writing illegal contract provisions exposes the agent to civil liability for resulting damages and SDREC disciplinary action. 'Client requested it' is not a defense for creating an illegal contract term.
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Key Terms to Know
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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
State-Specific Concepts
DRE Regulation
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