Agency
Which of the following situations is an example of an agent violating their fiduciary duty of loyalty?
APresenting all offers to the seller
BReferring the client to the agent's own property management company without disclosing the relationship✓ Correct
CProviding the client with a comparative market analysis
DDisclosing a known roof leak to buyers
Explanation
Referring a client to a business in which the agent has a financial interest, without disclosing that relationship, is a breach of the duty of loyalty — the agent is placing their own interests above the client's.
Related Alabama Agency Questions
- The duty of 'accounting' in a fiduciary relationship requires an agent to:
- Which of the following is the BEST example of a material fact that must be disclosed to a buyer?
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- The duty of 'accounting' in a real estate agency relationship requires the agent to:
- In Alabama, a real estate agent must disclose to a prospective buyer that they have a personal financial interest in a property they are selling. This disclosure must be:
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- A net listing is one where:
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