Which of the following is NOT a fiduciary duty owed by a real estate agent to their principal?
Correct Answer
C) Duty to guarantee a sale within an agreed time
Real estate agents cannot guarantee sale timeframes as this would be beyond their control and not a recognized fiduciary duty. The core fiduciary duties include loyalty, disclosure of material facts, accounting for funds, and acting in the principal's best interests.
Why This Is the Correct Answer
An agent cannot promise a market outcome such as a sale within a set time, and no fiduciary duty requires one. Loyalty, disclosure and accounting are all genuine fiduciary duties.
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An estate agent in Victoria fails to disclose a material conflict of interest to both parties in a transaction where the agent acts for both vendor and purchaser. Under the Estate Agents Act 1980, what is the most severe potential consequence?