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Practice Of Real EstateAgent ResponsibilitiesMEDIUM

An agent discovers that a client intends to use a property for an illegal purpose. The agent should:

Correct Answer

B) Terminate the agency relationship

An agent must not assist in or facilitate illegal activities. Upon discovering that a client intends to use a property for an illegal purpose, the agent is obligated to terminate the agency relationship. Continuing to assist could expose the agent to criminal liability and disciplinary action by the North Dakota Real Estate Commission.

Answer Options
A
Complete the transaction as requested
B
Terminate the agency relationship
C
Assist the client in exchange for a higher commission
D
Ignore the situation and proceed normally

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Related Topics & Key Terms

Related Topics:

lawful-instructionsfiduciary-dutiesagent-liabilityNDCC Chapter 43-23license-revocation

Key Terms:

illegal purposeterminate agencyobedience limitslawful instructionsNDCC Chapter 43-23agent liabilitylicense revocation
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