Logan Foster signs an exclusive right-to-sell listing agreement with broker Elena Bailey. In the resulting sale, to whom does Bailey's brokerage owe its fiduciary duties?
Correct Answer
B) The seller, who signed the listing agreement
Fiduciary duties follow the agency relationship, and the agency relationship is created by the listing agreement the seller signed. The brokerage therefore owes loyalty, confidentiality, obedience, and accounting to the seller, while owing the buyer honesty and disclosure of material facts but not fiduciary loyalty. Who ultimately funds the commission does not determine representation, and a brokerage holding a listing is an agent rather than a neutral facilitator.
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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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