Final answer:
A licensee selling land directly to a neighbor without involving their principal broker constitutes a breach of fiduciary duty, violating the legal obligation to act in the best interest of the broker.Option B is the correct answer.
Step-by-step explanation:
When a licensee sells a property without going through their principal broker, it is an example of a breach of fiduciary duty. A fiduciary duty is the legal obligation of one party to act in the best interest of another. The principal-agent relationship between the broker and the licensee entails a fiduciary duty which includes loyalty, confidentiality, obedience, accounting, and disclosure. Selling the land directly to a neighbor without the involvement of the principal broker is a violation of this duty, as it does not ensure that the interests of the principal are being served, and the standard procedures are not followed.
Selling a property without involving the principal broker is a clear breach of fiduciary duty, a legal obligation to act in the best interest of another. In the principal-agent relationship, fiduciary duty encompasses loyalty, confidentiality, obedience, accounting, and disclosure. The direct sale to a neighbor violates this duty, neglecting the principal's interests and sidestepping standard procedures, undermining the integrity of the principal-agent relationship.