Agency
In South Dakota, a buyer's agent who encourages a buyer to offer more than necessary for a property because the agent wants to earn a higher commission is:
APracticing good business by ensuring the transaction closes
BBreaching the fiduciary duty of loyalty to the buyer client✓ Correct
CFollowing standard industry practice
DFulfilling the duty of full disclosure
Explanation
A buyer's agent who advises the buyer to pay more than necessary to increase the commission amount is placing the agent's financial interest above the client's interest, which is a serious breach of the fiduciary duty of loyalty. The agent must always prioritize the client's best interests.
Related South Dakota Agency Questions
- A South Dakota buyer's agent who helps the buyer negotiate the lowest possible price is exercising the fiduciary duty of:
- The fiduciary duty of 'reasonable care' in a South Dakota agency relationship requires the agent to:
- When a listing broker assigns two different agents within the same office to separately represent a buyer and a seller, this is known as:
- In South Dakota, when must an agency disclosure be provided to a potential client?
- A South Dakota buyer's agent discovers that the seller's property has an undisclosed drainage problem. The buyer's agent should:
- When a South Dakota real estate transaction falls through due to a buyer's failure to obtain financing, the listing agent's obligation to the seller includes:
- In South Dakota, when does a buyer's agent's authority typically terminate?
- In South Dakota, a seller's agent who learns that the seller is in financial distress and must sell quickly should:
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