Loyalty is one of the core fiduciary duties owed to the buyer. It means the agent cannot promote their own interests or a third party's interests over the buyer's. This includes not steering buyers toward properties that offer higher commissions.
An agent knows one listing offers a higher commission than another. The loyalty obligation prevents the agent from recommending the higher-commission property solely for financial gain — the agent must recommend what best fits the buyer's needs.
Loyalty questions often involve commission conflicts. If an agent recommends a property because of higher pay, that violates loyalty. The correct answer always prioritizes the CLIENT's interests over the agent's compensation.
Related Terms
Related Concepts
The fiduciary obligations a buyer's agent owes to their client, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.
A form that explains to the buyer the types of agency relationships available and the duties associated with each, required to be provided before substantive discussions begin.
The practice of a listing broker sharing commission with a buyer's broker, historically offered through the MLS but now prohibited from MLS display under the 2024 NAR settlement.
An initial meeting between a buyer and agent to discuss the buyer's needs, explain agency relationships, review representation agreements, and establish expectations for the home-buying process.
The legal ending of a buyer representation agreement, which can occur through expiration, mutual consent, breach, or specific termination provisions outlined in the contract.
Frequently Asked Questions
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