What obligation does a broker have towards his principal in real estate transactions?

What obligation does a broker have towards his principal in real estate transactions?

• A. To present all written offers received
• B. To ensure the property is sold for the highest price
• C. To solely represent the buyer’s interests
• D. To avoid any conflicts of interest with clients

Answer: (A)

In real estate transactions, a broker has a fiduciary duty to their principal, which includes the obligation to act in the best interests of that principal. Presenting all written offers received is a fundamental aspect of this duty. It ensures that the principal is fully informed about all potential transactions and can make knowledgeable decisions regarding the sale or purchase of a property. This practice upholds transparency and trust in the broker-client relationship, allowing the principal to consider every opportunity that might affect their interests. The obligation to present all offers aligns with the broker’s responsibility to keep their principal informed about the market and the progress of their transaction. While ensuring a sale at the highest price and avoiding conflicts of interest are important responsibilities, the specific act of presenting all written offers holds particular significance as it is a direct reflection of the broker's duty to communicate and represent the principal’s best interests fully.

In real estate transactions, a broker has a fiduciary duty to their principal, which includes the obligation to act in the best interests of that principal. Presenting all written offers received is a fundamental aspect of this duty. It ensures that the principal is fully informed about all potential transactions and can make knowledgeable decisions regarding the sale or purchase of a property. This practice upholds transparency and trust in the broker-client relationship, allowing the principal to consider every opportunity that might affect their interests.

The obligation to present all offers aligns with the broker’s responsibility to keep their principal informed about the market and the progress of their transaction. While ensuring a sale at the highest price and avoiding conflicts of interest are important responsibilities, the specific act of presenting all written offers holds particular significance as it is a direct reflection of the broker's duty to communicate and represent the principal’s best interests fully.