- A duty of loyalty is one of the most fundamental fiduciary
duties owed by an agent to his principal. This duty obligates
a real estate broker to act at all times solely in the best
interests of his principal to the exclusion of all other interests,
including the brokers own self-interest. A corollary of
this duty of loyalty is a duty to avoid steadfastly any conflicts
of interest that might compromise or dilute the brokers
undivided loyalty to his principals interests.
2. Obedience - An agent is obligated to obey promptly
and efficiently all lawful instructions of his principal.
- An agent is obligated to disclose to his principal all
relevant and material information that the agent knows and that
pertains to the scope of the agency. This duty specifically
obligates a real estate broker representing a buyer to reveal:
The willingness of the seller to accept a lower price.
Any facts relating to the urgency of the sellers
need to dispose of the property.
The brokers relationship to, or interest in, the
seller or the property for sale.
Any facts affecting the value of the property.
The length of time the property has been on the market,
and other offers or counteroffers that have been made.
Any other information that would affect the buyers
ability to obtain the property at the lowest price and most
(Continue To Part 4 of 7)