Under California Business & Professions Code §10176(e), a licensee is required to present all written offers to the seller in a timely manner, even if the property is already under contract. Which fiduciary duty most directly governs this obligation?
Correct Answer
C) Duty of obedience
The duty of obedience requires a licensee to follow all lawful instructions from their principal and to comply with legal mandates governing their conduct. B&P Code §10176(e) is a statutory instruction that licensees must obey — presenting all offers promptly is not discretionary. Because this obligation is imposed by law rather than derived from the agent's independent judgment or skill, it falls squarely within obedience to lawful duty rather than the exercise of diligence or care.
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