Under Michigan's Occupational Code (MCL 339.2501 et seq.), which fiduciary duty requires a real estate licensee to place the client's interests above the licensee's own personal or financial interests throughout the transaction?
Correct Answer
B) Loyalty
Loyalty is the fiduciary duty that obligates a Michigan licensee to act solely in the client's best interest, subordinating the licensee's own interests at all times. MCL 339.2512d codifies this duty as part of the agency relationship in Michigan.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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