If a real estate agent representing a seller intends to purchase the property directly from the seller, this would put the agent in conflict regarding the fiduciary duty of:

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The correct answer is loyalty because, in a fiduciary relationship, an agent has an obligation to act in the best interests of the principal, which in this case is the seller. When a real estate agent who represents the seller intends to buy the property for themselves, this creates a dual interest in the transaction. The agent's personal interest in purchasing the property may conflict with their duty to secure the best terms for the seller. The agent must prioritize the seller's interests above their own, and by intending to buy the property, they could be perceived as prioritizing their own financial gain over the seller’s benefit. This situation undermines the trust inherent in the fiduciary relationship, emphasizing the loyalty the agent owes to the seller.

In contrast, while obedience relates to following the seller's instructions and care pertains to the diligence and competence in handling the seller's affairs, these do not inherently create a conflict of interest in the same way that loyalty does. Disclosure involves informing the seller of relevant information, but the primary concern here is the potential conflict that arises when the agent has a competing interest in the transaction.

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