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Practice Of Real EstateAgent ResponsibilitiesMEDIUM

A South Dakota real estate agent discovers that their client plans to use a property for illegal purposes. The agent should:

Correct Answer

B) Terminate the relationship, as agents cannot assist in illegal activities

An agent has no obligation to follow instructions that are illegal. If a client plans to use a property for illegal purposes, the agent should terminate the agency relationship. Assisting in illegal activities could result in license revocation and criminal liability.

Answer Options
A
Continue representing the client as long as the contract is valid
B
Terminate the relationship, as agents cannot assist in illegal activities
C
Report to the police but continue assisting
D
Ignore it as it's the client's business

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Related Topics & Key Terms

Related Topics:

lawful-instructionsduty-of-obedience-limitsagent-liabilitytermination

Key Terms:

illegal purposeterminateduty limitsagent liabilitylawful instructions only
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