After both the buyer and the seller have signed a purchase agreement, the agent raises the stated purchase price so that the commission will be larger, without telling either party. This act is:
Correct Answer
A) forgery.
A material change made to a signed instrument without the parties' authorization, and with intent to gain, is a falsification of the document rather than a correction. California Penal Code Section 470 treats fraudulently altering a contract or deed as forgery, and the same conduct is grounds for discipline as fraud or dishonest dealing under Business and Professions Code Section 10176. A legitimate change after signing is made with the knowledge of the parties and is initialed and dated by them, which is exactly what is missing here.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to:
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