Final answer:
A broker entering into a listing contract with a seller owes the duty of disclosure of material facts to prospective buyers, informing them of significant property issues. While loyalty and accountability are reserved for the seller, disclosure ensures fair transactions for buyers in the market.
Step-by-step explanation:
When a broker enters into a listing contract with a seller, the broker's primary duty and loyalty are towards the seller, who is their client. However, the broker also owes certain duties to prospective buyers, mainly revolving around fair and ethical treatment. The specific duty that the broker owes to prospective buyers is the disclosure of material facts. This means that the broker is required to inform buyers of any significant information that could influence their decision on whether to purchase a property, such as defects or issues concerning the property. It's pertinent to note that while loyalty, obedience, and accountability are duties owed to their client, the seller, disclosure extends to the buyers to ensure transparency and fairness in the transaction process.
It is important for both buyers and sellers to be well-informed of the conditions in the markets, and they each have the freedom to enter into and leave the market whenever they choose. This ensures a competitive market where buyers and sellers act independently.