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When you refuse to screen prospective buyers based on their ethnicity, your client, Matt, "fires" you as his agent, and you agree to his decision to part ways. Do you still owe this guy any fiduciary duties?

a) Yes, until the property is sold.
b) No, as the agency relationship has ended.
c) Yes, indefinitely.
d) No, only during the active listing period.

1 Answer

2 votes

Final answer:

No, you do not owe the client any fiduciary duties after the agency relationship has ended, except for certain obligations like confidentiality which may persist regarding information obtained during the relationship.

Step-by-step explanation:

When you refuse to screen prospective buyers based on their ethnicity, which is a matter of fair housing laws, and your client ends the agency relationship as a result, you no longer owe him fiduciary duties once the relationship is terminated. The most accurate answer to the question, 'Do you still owe this guy any fiduciary duties?' is b) No, as the agency relationship has ended. An agent's fiduciary duties are to act with loyalty, care, obedience, disclosure, confidentiality, and to account for all transactions related to the agency relationship. Once the agency relationship ends, these duties cease to exist, except for certain obligations such as confidentiality, which may continue with respect to information obtained during the relationship. However, in regard to actively representing the client's interests in the sale of property, these duties no longer apply after the relationship has concluded.

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