Check Your Understanding Answers
- What are the five fiduciary duties an agent has to his or her principal?
The five fiduciary duties are reasonable care, obedience, accountability, loyalty, and disclosure.
- What actions demonstrate exercising care when representing a buyer?
- Helping the buyer locate appropriate housing
- Evaluating property values and property conditions
- Determining financing alternatives
- Presenting offers and counteroffers with the buyer’s interests in mind
- What exception exists to the duty of obedience when working with a client?
An agent is not bound by the duty of if the principal’s directions are not legal.
- An agent’s fiduciary responsibilities to a client usually end when the transaction closes. This is not true of which duty?
Confidentiality. This duty extends beyond the termination of the relationship. No personal information gained during the term of the agreement can ever be disclosed to another party.
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