EstatePass
AgencyFiduciary_dutiesMEDIUM

Sandra is a Connecticut-licensed salesperson representing buyer Kevin. Kevin instructs Sandra to submit an offer of $475,000 on a listed property, but Sandra privately believes the home is worth at least $510,000 and that Kevin should offer more. Sandra submits the $475,000 offer as instructed without comment. Which statement best describes Sandra's conduct under Connecticut agency law?

Correct Answer

C) Sandra fulfilled her fiduciary duties by following Kevin's lawful instructions while representing his interests

Sandra properly fulfilled her fiduciary duties. The duty of obedience requires a Connecticut buyer's agent to follow the client's lawful instructions, even if the licensee personally disagrees with the strategy. Submitting a lower offer than the agent recommends is a lawful client decision. Sandra's duty of loyalty and reasonable care are also satisfied because she acted in Kevin's interest by executing his instructions without undermining his negotiating position.

Answer Options
A
Sandra violated the duty of loyalty by not disclosing her personal opinion of value to the seller
B
Sandra violated the duty of reasonable care by submitting an offer she believed was too low
C
Sandra fulfilled her fiduciary duties by following Kevin's lawful instructions while representing his interests
D
Sandra violated the duty of disclosure by withholding her valuation opinion from Kevin before he finalized the offer

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Agency Question

Sign up free to unlock full analysis

Background Knowledge for Agency

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Agency

Sign up free to unlock full analysis

Common Mistakes to Avoid on Agency Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

fiduciary_dutiesobediencebuyer_agencyct_agency

Related Concepts

The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.

A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.

The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.

Was this explanation helpful?

More Agency Questions

People Also Study

Related Articles

Agency Questions

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing