Final answer:
A broker acting in a fiduciary capacity representing a client in real estate dealings is bound by real estate transaction and contract laws.
Step-by-step explanation:
A broker acting in a fiduciary capacity representing a client in dealings with third persons in selling, buying from or exchanging real property is bound by the laws of real estate transactions and contracts. These laws provide legal guidelines and regulations to protect the interests of all parties involved in real estate transactions, including buyers, sellers, and brokers.
For example, in the United States, brokers who sell securities are regulated by the Securities and Exchange Commission (SEC). The SEC oversees the sale of securities and the brokers, dealers, and bankers who sell them. The Federal Securities Act and subsequent legislation established legal standards for disclosure of information relevant to publicly traded securities.
Overall, the laws that bind brokers in real estate transactions aim to ensure fair and ethical practices, protect the rights of clients and customers, and maintain the integrity of the real estate market.