Question

According to the law of agency, real estate brokers are required to observe several duties as they act as an agent for an individual trying to buy or sell a property. Which of the following duties refers to a broker's obligation to be completely open and honest with the principal?

A.Disclosure
B. Confidentiality
C. Loyalty
D. Obedience

Answer 1

Answer: DISCLOSURE is the duty that refers to a broker's obligation to be completely open and honest with the principal.

Explanation: Disclosure is defined as the making known of a previously hidden fact or series of facts to another party; the act of exposing the knowledge of others. All the information and knowledge gotten from a disclosure will most likely affect the decisions taken by the principal.