Under California law, the duty of 'loyalty' in a fiduciary relationship requires the agent to:
Correct Answer
A) Place the principal's interests above the agent's own interests and the interests of third parties
The duty of loyalty is the core fiduciary obligation. Under California law, the agent must place the principal's interests above their own interests and the interests of any third party. This means the agent cannot engage in self-dealing, secret profits, or any conduct that benefits the agent at the principal's expense.
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Previous Question
A California salesperson receives an earnest money deposit check from a buyer made payable directly to the salesperson. Under California law, what is the salesperson's required course of action?
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A California listing agent receives a full-price offer on the first day the property is listed. The seller is thrilled and wants to accept immediately. The agent, however, believes the property is underpriced and could sell for more. Under the agent's fiduciary duty, what should the agent do?