What is the primary ethical duty of a broker in an agency relationship?

What is the primary ethical duty of a broker in an agency relationship?

• A. Disclose all items to all parties
• B. Represent all parties
• C. Represent neither buyer nor seller
• D. Represent the principal

Answer: (D)

The primary ethical duty of a broker in an agency relationship is to represent the principal. In this context, the principal is the client who has engaged the broker to act on their behalf. The broker's role includes advocating for the interests of the principal, providing relevant information, and ensuring that the principal's needs and objectives are prioritized throughout the transaction process. This representation involves a fiduciary duty, which encompasses loyalty, disclosure, confidentiality, and reasonable care. By focusing on the interests of the principal, the broker is obligated to act in a manner that furthers the principal's goals, whether it be negotiating terms, handling communications, or navigating challenges that arise during the transaction. By ensuring that the principal's interests are at the forefront, the broker builds trust and provides a level of service essential to a successful agency relationship. This duty is fundamental to maintaining ethical standards in real estate practice, ensuring that clients feel secure and supported in their real estate endeavors.

The primary ethical duty of a broker in an agency relationship is to represent the principal. In this context, the principal is the client who has engaged the broker to act on their behalf. The broker's role includes advocating for the interests of the principal, providing relevant information, and ensuring that the principal's needs and objectives are prioritized throughout the transaction process.

This representation involves a fiduciary duty, which encompasses loyalty, disclosure, confidentiality, and reasonable care. By focusing on the interests of the principal, the broker is obligated to act in a manner that furthers the principal's goals, whether it be negotiating terms, handling communications, or navigating challenges that arise during the transaction.

By ensuring that the principal's interests are at the forefront, the broker builds trust and provides a level of service essential to a successful agency relationship. This duty is fundamental to maintaining ethical standards in real estate practice, ensuring that clients feel secure and supported in their real estate endeavors.