A West Virginia agent discovers their client intends to use the property for illegal drug manufacturing. The agent should:
Correct Answer
B) Terminate the agency relationship immediately
An agent must not assist in illegal activities. The duty of obedience to the client does not extend to illegal instructions. The agent should terminate the relationship and may have a duty to report the activity to appropriate authorities.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
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