Laws & AgencyQuestion 27 of 120
An agent who secretly buys the principal's property through a straw buyer to resell at a profit has most clearly breached the fiduciary duty of:
a.Loyalty
b.Accounting
c.Reasonable care
d.Obedience
Explanation
The duty of loyalty requires the agent to place the principal's interests above the agent's own and to avoid undisclosed self-dealing. Secretly acquiring the principal's property for personal profit is a classic breach of loyalty. Such conduct can also lead to license discipline and rescission of the transaction.
Law Reference: CA Civil CodePractice all 120 questions free — no signup required.
Related questions on this topic
- The Unruh Civil Rights Act primarily prohibits discrimination by:
- California's Rumford Fair Housing Act, also called the Holden Act's companion, chiefly prohibits discrimination in:
- When a single broker represents both the buyer and the seller in the same transaction, the arrangement is called:
- An agent tells a buyer, 'This is the best house on the block.' This statement is generally considered:
- Directing prospective buyers toward or away from certain neighborhoods based on their race is the illegal practice of:
- Inducing homeowners to sell by warning that members of a protected class are moving into the neighborhood is the illegal practice of:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California DRE Real Estate Salesperson License Exam · How we review