Agency
Which of the following best describes the duty of loyalty in an agency relationship?
AAlways achieving the highest sale price regardless of client wishes
BPutting the client's interests above those of all others, including the agent's own✓ Correct
CDisclosing all offers to both buyer and seller simultaneously
DRepresenting only one client per year
Explanation
Loyalty requires the agent to place the client's interests above everyone else's, including the agent's own financial interests. This prevents self-dealing and conflicts of interest.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
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