Final answer:
The laws of agency dictate that a real estate broker must act with loyalty and in the best interest of the client, whether they represent a seller or a buyer, fulfilling their fiduciary responsibilities.
Step-by-step explanation:
The laws of agency require that an agent, such as a real estate broker, be faithful and loyal to their principal, which could be either the seller or the buyer. When a broker takes a listing, they have a fiduciary responsibility to the seller (the principal) to act in the seller's best interests, including securing the best price and terms for the sale of the property. Conversely, when a broker represents a buyer, they must act in the buyer's best interests, seeking the most favorable terms and negotiating the best price.
When a broker takes a listing, being faithful and loyal to the principal means that the broker must act in the best interests of the seller. This includes disclosing all relevant information about the property, marketing it effectively, and negotiating the best possible terms for the seller. The broker should prioritize the seller's goals and work diligently to achieve them.
On the other hand, when a real estate broker represents the buyer, being faithful and loyal to the principal means that the broker must act in the best interests of the buyer. This includes helping the buyer find suitable properties, providing all relevant information about them, and negotiating the best possible terms for the buyer. The broker should prioritize the buyer's goals and work diligently to achieve them.