New York Real Estate Salesperson ExaminationBrokerage and Salesperson ResponsibilitiesEasy
A real estate salesperson is assisting a buyer client in submitting an offer on a property. The salesperson learns that the seller is highly motivated due to an impending job relocation and is likely to accept a lower offer than listed. If the salesperson shares this information with their buyer client, which fiduciary duty are they primarily upholding?
- ALoyalty
- BConfidentiality
- CObedience
- DAccountability
Show answer & explanationAnswer & explanation
Correct answer: A. Loyalty
The duty of loyalty requires a salesperson to act solely in the best interests of their client. Sharing information that could help their buyer client secure a better deal, even if it's sensitive information about the seller (obtained legitimately and not through a breach of another duty), directly demonstrates loyalty to the buyer.
Why the other options are wrong
- B. Confidentiality protects the client's private information; revealing seller motivation to a buyer is not about protecting the buyer's confidentiality.
- C. Obedience involves following lawful instructions, which is not the primary duty being demonstrated here.
- D. Accountability refers to safeguarding client funds and property, which is unrelated to sharing negotiation strategy information.
Fiduciary Duty of Loyalty
An agent's obligation to act at all times solely in the best interests of their principal, even above their own interests.
- Puts client's interests first.
- Requires full disclosure of material facts to client.
- Central to the agency relationship.
Memory trick: OLD CAR is how agents serve their heart