Question

While hosting an open house, Liza speaks with prospective buyers. They're interested in the house, but think the listing price is a little high. They ask her what other incentives they could include in their offer to get the seller to come down on their price. If Liza helps them, what duty may she be breaching?

a) Accounting

b) Loyalty

c) Obedience

d) Reasonable skill and care

Answer 1

Liza may breach her duty of loyalty to the seller by suggesting incentives to prospective buyers that could lower the home's sale price. The duty of loyalty requires an agent to prioritize their client's interests above all others.

Step-by-step explanation:

When Liza, a real estate agent, speaks with prospective buyers about ways to convince a seller to reduce a home's sale price, she needs to be cautious of her professional duties. If she suggests incentives to persuade the seller to lower the price, she may be breaching her duty of loyalty to the seller.

The duty of loyalty is a fiduciary duty that requires an agent to act in the best interests of the client, putting the client's interests above those of any other parties, including themselves.

By assisting the buyers and suggesting strategies to lower the price, Liza could be putting the buyers' interests above her client – the seller's – which would be a direct violation of her fiduciary responsibilities.