Under Australian agency law, what is the primary duty that a real estate agent owes to their principal?
Correct Answer
A) To act in the principal's best interests at all times
The fiduciary duty requires agents to act in their principal's best interests at all times, which is the fundamental obligation in the agent-principal relationship. This overarching duty encompasses all other responsibilities and forms the basis of trust in the relationship.
Why This Is the Correct Answer
The fiduciary duty to act in the principal's best interests is the overarching obligation. Loyalty, obedience to lawful instructions, disclosure and accounting all flow from it.
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