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?
Correct Answer
A) Secret profit
Secret profit is correct because the agent earned undisclosed interest income by placing the client's money in a personal account, an undisclosed benefit that violates the duty of loyalty.
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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?
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A broker secretly represents both sides of the same sale but tells each party that only one client is being represented. What is this violation called?