A commercial tenant is negotiating a five-year lease for retail space. The tenant hires a tenant representative broker to negotiate lease terms on the tenant's behalf. What agency relationship exists between the tenant and the tenant representative?
Correct Answer
A) The tenant representative is the tenant's agent and owes fiduciary duties to the tenant
When a tenant hires a broker to represent the tenant's interests in a lease negotiation, the broker becomes the tenant's agent. The broker owes fiduciary duties—loyalty, disclosure, obedience, confidentiality, accounting, and reasonable care—to the tenant.
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