A seller signs a listing agreement and instructs her agent in writing to accept only offers above $450,000 and to reject any offer that contains a financing contingency. Mid-listing, a $440,000 cash offer arrives. The agent personally believes the cash offer is excellent and unlikely to be matched, but she must follow her client's lawful written directive. She presents the offer to the seller — as she is required to do — but she does not accept it on the seller's behalf. Which fiduciary duty required her to comply with the seller's specific instructions rather than substitute her own judgment?
Correct Answer
C) Obedience
The seller gave a lawful written directive — accept only above $450K, reject offers with financing contingencies — and the agent had to comply with that directive rather than impose her own preferences. The fiduciary duty to follow a client's lawful instructions is obedience.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
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Previous Question
During a showing, an agent tells a prospective buyer that the kitchen is 'absolutely gorgeous' and that owning the home will make the buyer 'the envy of all your friends.' The agent uses no measurable specifics — no dates, no dimensions, no factual claims about appliances or systems. The buyer relies on this enthusiasm in part when deciding to make an offer, but later sues the agent claiming the kitchen does not feel as gorgeous as advertised. The court finds no actionable misrepresentation because the statements lacked verifiable factual content. How should the court properly classify the agent's statements?
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All of the following are traditional fiduciary duties owed by an agent to a client EXCEPT