Casey Patel asks a licensee to unlock homes and write up an offer but refuses to sign any representation agreement. What is Casey's usual status relative to that brokerage?
Correct Answer
C) Customer, owed honesty and material fact disclosure but not fiduciary duties
A buyer who accepts a licensee's help without entering a representation agreement is a customer rather than a client. The brokerage owes a customer honesty, fair dealing, and disclosure of known material facts about the property, but it owes no loyalty, confidentiality, or advocacy, because those fiduciary duties arise only out of an agency relationship. Unlocking homes and filling in an offer at the buyer's direction are ministerial services a licensee may perform for a customer without creating agency.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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.
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