Question

Buyer A hires Broker B as a buyer's broker. Broker B assures Buyer A that her fee will be paid for by the seller. To whom does Broker B owe his fiduciary duty in this arrangement?

Answer 1

In this arrangement, Broker B owes his fiduciary duty to Buyer A.

Step-by-step explanation:

In this arrangement, Broker B owes his fiduciary duty to Buyer A.

Even though the seller may be paying the broker's fee, it does not change the fact that the broker is working on behalf of the buyer. The fiduciary duty of a buyer's broker is to always act in the best interest of the buyer and provide them with loyalty, confidentiality, disclosure, and reasonable care.

Therefore, Broker B must prioritize Buyer A's needs and goals, provide them with honest and accurate information, negotiate on their behalf, and keep their personal and financial information confidential.