Leo engaged Raveen, a real estate agent, to sell his house and lot for him. Without disclosing the fact to Leo, Raveen arranged for his brother-in-law to offer to purchase the house at a relatively low price, because he knew Leo was anxious to sell the property. After the transaction closed, Leo discovered the true facts. Raveen would be liable to Leo for any difference between the market price of the property, and the price at which the property was sold, because Raveen failed to disclose the true circumstances concerning the offer made.

Question

Quizplus · Accepted Answer

Raveen breached his fiduciary duty to Leo by not disclosing his personal interest in the transaction, which is a conflict of interest. Real estate agents are obligated to act in their client's best interest, including disclosing all material facts that could affect the client's decision.

Leo Engaged Raveen, a Real Estate Agent, to Sell His