An agent arranges for a friend's contracting company to do repairs on a client's property and receives a referral fee without telling the client. What type of violation is this?
Correct Answer
B) Secret profit
Secret profit is correct because the agent received an undisclosed benefit or compensation that violates the duty of loyalty.
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A broker properly discloses the intent to represent both the buyer and seller and obtains written consent from both parties before proceeding. What role does the broker hold in this transaction?
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An agent purchases a listed property through a shell company without disclosing the personal interest to the seller. Besides being a secret profit, what broader fiduciary violation does this represent?