Agency
Which of the following duties does a New Mexico transaction broker owe to both parties?
ALoyalty and confidentiality as fiduciary
BHonest dealing, fairness, and disclosure of material facts✓ Correct
CObedience to all instructions regardless of legality
DGuarantee of the best possible sale price
Explanation
A transaction broker owes limited duties: honest dealing, fairness, disclosure of material facts about the property or transaction, using skill and care, and accounting for funds. They are not fiduciaries.
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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.
Buyer's AgentA 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.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
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