AgencyIntermediateDelaware Exam

What does 'undivided loyalty' mean as a fiduciary duty in Delaware real estate?

AThe agent divides their loyalty equally between buyer and seller

BThe agent's loyalty is entirely and exclusively owed to their client — not divided with other partiesCorrect

CThe agent's loyalty is undivided from the time of listing to closing

DThe agent may not represent multiple clients in the same week

Why The agent's loyalty is entirely and exclusively owed to their client — not divided with other parties Is Correct

Answer B: The agent's loyalty is entirely and exclusively owed to their client — not divided with other parties

Undivided loyalty means the agent's allegiance is entirely owed to their principal-client. The agent must put the client's interests above their own and above the interests of all other parties to the transaction.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

Fiduciary Duty

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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Key Terms to Know

Fiduciary Duty

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

Buyer's Agent

A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.

Seller's Agent (Listing Agent)

A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.

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