Which of the following best describes the legal relationship between a real estate agent and their client under Australian agency law?
Correct Answer
B) A fiduciary relationship requiring loyalty, good faith and care toward the client
The agent-principal relationship is a fiduciary relationship, which is one of the highest forms of legal relationship requiring utmost good faith, loyalty, and care. This relationship imposes strict legal duties on the agent to act solely in the principal's interests.
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