Which of the following is NOT a fiduciary duty owed by a Montana real estate licensee to their client?
Correct Answer
C) Guaranteeing the sale of the property
Montana recognizes the following fiduciary duties owed by a licensee to their client: loyalty, confidentiality, disclosure of material facts, obedience to lawful instructions, reasonable care and diligence, and accounting for funds. Guaranteeing a sale is not a fiduciary duty and is never permissible — promising a guaranteed sale outcome would constitute misrepresentation and could expose the licensee to disciplinary action under MCA 37-51-321. No licensee can control market conditions or buyer behavior, making such a guarantee inherently deceptive.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
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.
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