Without telling the seller, the listing agent buys the property through a family member to capture a bargain for personal benefit. What misconduct does this most clearly show?
Correct Answer
B) Self-dealing
Self-dealing is correct because the facts match conduct in which an agent places personal interests ahead of the principal's interests in a transaction. That is the best description of the relationship, right, or legal concept tested here.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
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A listing agreement creates an agency relationship between:
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Which of the following is NOT a recognized way an agency relationship may be created?
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A listing agent receives an earnest money check and, without telling the seller, deposits it into a personal savings account to earn interest before transferring it. What undisclosed financial benefit has the agent gained?