Agency Relationships and Disclosures Practice Question
Question
A property manager is preparing a written response involving fiduciary duty of loyalty. Which statement best describes fiduciary duty of loyalty? (Item 81)
Answer choices
- A. Put the client’s interests ahead of the licensee’s personal interest.
- B. It makes oral promises enforceable in every real estate transaction.
- C. It is optional whenever both parties verbally agree to proceed.
- D. It allows a salesperson to act independently of the responsible broker.
Correct Answer
A. Put the client’s interests ahead of the licensee’s personal interest.
Explanation
The correct answer is A because fiduciary duty of loyalty requires candidates to put the client’s interests ahead of the licensee’s personal interest. The other options overstate the effect of custom, oral agreement, escrow, or independent salesperson action and do not reflect safe California exam practice.
Question details
- Difficulty: easy
- Domain: Agency Relationships and Disclosures
- Objective: fiduciary duty of loyalty