Under South Carolina agency law, which of the following is NOT a duty that a licensee owes to all parties in a real estate transaction, including customers who are not clients?
Correct Answer
D) Maintaining loyalty to the consumer's interests above all other parties
Loyalty is a fiduciary duty owed exclusively to a client — not to all parties in a transaction. Under South Carolina law, the duty of loyalty requires an agent to place the client's interests above those of all other parties, including the agent's own interests. This duty is part of the full fiduciary relationship and does not extend to customers (non-clients). A licensee owes honesty, good faith, disclosure of known material defects, and timely presentation of offers to all parties, but loyalty only to clients.
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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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