Agency
The 'obedience' duty requires a Kentucky agent to:
AFollow all lawful instructions of the client✓ Correct
BFollow any instruction even if it violates fair housing laws
CAlways put the client's wishes over legal requirements
DObey KREC rather than the client
Explanation
The duty of obedience requires the agent to follow the client's lawful instructions. The agent must NOT follow instructions that are illegal, such as fair housing violations.
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Key Terms to Know
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.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
State-Specific Concepts
Continuing Education
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