In Texas, a broker's fiduciary duties to a client include all of the following EXCEPT:
Question & Answer
Review the question and all answer choices
Loyalty
Loyalty is a core fiduciary duty requiring brokers to prioritize their client's interests above all others, including their own. This duty means brokers must avoid conflicts of interest and act solely in the client's best interest throughout the transaction.
Obedience
Obedience is a fiduciary duty requiring brokers to follow lawful instructions from their clients. This duty does not obligate brokers to perform illegal acts but requires them to adhere to their client's legitimate objectives and directions.
Guaranteeing profit
Disclosure
Disclosure is a fundamental fiduciary duty requiring brokers to reveal all material facts that could affect a client's decision. This includes disclosing property defects, agency relationships, and any other information that might influence the transaction.
Why is this correct?
Guaranteeing profit is not a fiduciary duty because brokers cannot control market conditions or guarantee financial outcomes. Real estate values fluctuate based on numerous factors beyond a broker's control, making such guarantees impossible to ethically or legally provide.
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