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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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?