105k views
3 votes
When a broker has a relationship of trust and confidence with a client, it is called:

a) Subordination
b) Hypothecation
c) Fiduciary
d) Non-agency

User Griffort
by
8.6k points

1 Answer

2 votes

Final answer:

When a broker has a relationship of trust and confidence with a client, it is called a fiduciary relationship, where the broker must act in the best interest of the client.

Step-by-step explanation:

When a broker has a relationship of trust and confidence with a client, this is known as a fiduciary relationship. The term fiduciary refers to a situation where one party, in this case, the broker, has a legal and ethical obligation to act in the best interest of the other party, which is the client. This is different from subordination, hypothecation, or non-agency relationships that have different legal implications and do not necessarily involve a trust relationship.

User Ulad Kasach
by
7.9k points