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A real estate salesperson who represents a seller owes a fiduciary duty to which of the following parties...?

The principal only
The sponsoring broker only
The real estate salesperson's sponsoring broker and the principal
Neither the sponsoring broker or principal

User Nathanbweb
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1 Answer

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Final answer:

A real estate salesperson owes fiduciary duty to the principal, who is the client they are representing, ensuring loyalty and protection of the client's interests.

Step-by-step explanation:

A real estate salesperson who represents a seller does indeed owe a fiduciary duty. This duty is owed primarily to the principal, who is the client that they are representing in the transaction, not to the sponsoring broker, although they may have other obligations toward the broker as their agent. The fiduciary relationship means that the real estate salesperson must act with utmost good faith, loyalty, and fidelity in dealings with the principal. They must disclose all material facts, protect the principal's interests, and obey the principal's lawful instructions within the scope of the agency relationship.

User Sam DeHaan
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