Reese Richardson gives Logan Foster an earnest money check, and Logan Foster promptly deposits it in the proper trust account and keeps accurate records. Which fiduciary duty is this?
Correct Answer
D) Accountability
Accountability is correct because the facts match the fiduciary duty to safeguard and account for money, property, and documents entrusted to the agent. That is the best description of the relationship, right, or legal concept tested here.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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