Question

As an agent for the buyer or seller, a broker has six basic fiduciary responsibilities. Which of the following definitions best describes the responsibility of obedience?

Multiple Choice

• A broker must follow the instructions of the principal to the limits of what is legal and ethical.

• A broker must keep the principal informed of all changes in the financials of the negotiation.

• A broker must never subordinate the best interest of the principal to the interests of others, including himself/herself.

• A broker must not convey information about the principal’s financial status or motivations.

Answer 1

The correct answer is:

A. A broker must follow the instructions of the principal to the limits of what is legal and ethical.