A seller in Albuquerque signs a listing agreement with ABC Realty. The listing agreement designates ABC Realty as the seller's agent. A buyer's agent from XYZ Realty brings a buyer who makes an offer on the property. The buyer's agent from XYZ Realty owes fiduciary duties to whom?
Correct Answer
D) The buyer, because the buyer's agent from XYZ Realty has a buyer agency relationship with the buyer
Under New Mexico's Brokerage Relationships in Real Estate Transactions Act, a buyer's agent owes fiduciary duties exclusively to the buyer. The buyer's agent from XYZ Realty has established a buyer agency relationship with the buyer and therefore owes loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting to the buyer — not to the seller or to the listing brokerage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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