Under the Michigan Occupational Code, a licensee acting as a seller's agent owes fiduciary duties to the seller. Which of the following is NOT a fiduciary duty owed by a seller's agent to the seller?
Correct Answer
C) Advocacy for the buyer's ability to obtain the lowest possible purchase price
A seller's agent owes fiduciary duties exclusively to the seller, which include loyalty, confidentiality, disclosure, obedience, and reasonable care. Advocating for the buyer to obtain the lowest possible purchase price is directly contrary to the seller's interests and is therefore NOT a duty of a seller's agent. A seller's agent must work to obtain the best possible terms for the seller, not the buyer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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