Montana License Law

A Montana real estate licensee who practices 'churning' (encouraging clients to buy and sell repeatedly primarily to generate commissions) may be violating their duty of:

ACompetency only
BLoyalty—acting in the client's best interest rather than the agent's own financial interest✓ Correct
CObedience to the broker's instructions
DConfidentiality of client information

Explanation

Churning—recommending transactions primarily for the agent's commission benefit rather than the client's genuine interest—violates the fiduciary duty of loyalty. The agent must always put the client's interests first.

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