Vermont licensee Rachel is representing buyer Kevin. Kevin asks Rachel to write an offer on a property listed by a different brokerage. The listing agent contacts Rachel and offers to share the commission if Rachel persuades Kevin to raise his offer price. How should Rachel respond under Vermont agency law?
Correct Answer
B) Decline, because advising Kevin to raise his price to benefit from a commission arrangement would violate her fiduciary duty of loyalty to Kevin
Rachel owes Kevin full fiduciary duties as his buyer's agent, including the duty of loyalty. Advising Kevin to raise his offer price in order to increase Rachel's commission from the listing agent would place Rachel's financial interest above Kevin's interest, which is a clear breach of loyalty. Vermont agency law under 26 V.S.A. Chapter 41 and VREC Rule 4.1 prohibits licensees from acting in a manner that benefits themselves at the expense of their client.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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