Agency
A Rhode Island licensee working as a transaction broker (facilitator) owes which duty to both parties?
AFull fiduciary duty to both buyer and seller
BLimited duty of fair dealing and honesty, but not full fiduciary loyalty✓ Correct
CFiduciary duty only to the party paying the commission
DNo duties of any kind
Explanation
A transaction broker or facilitator in Rhode Island acts as a neutral party and owes duties of honesty, fair dealing, and disclosure of material facts, but does not owe the full fiduciary duties of loyalty and confidentiality to either party.
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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.
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.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Math Concepts
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