Broker Linda in South Dakota has a listing agreement with seller David for his Sioux Falls property. Buyer Carol, who is not represented by any agent, contacts Linda directly and wants to purchase the property. Linda facilitates the transaction and assists Carol with paperwork without entering into a buyer representation agreement. In this situation, Carol is best described as which of the following?
Correct Answer
B) A customer whom Linda assists without owing fiduciary duties
Under South Dakota agency law, a 'customer' is a party to a transaction who receives real estate services but is not represented by the licensee as a client. Because Linda has not entered into a buyer representation agreement with Carol, Carol is a customer. Linda owes Carol honesty and disclosure of known material facts but does not owe Carol the full fiduciary duties owed to her client David.
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