Humber/Ontario Real Estate Course 1 Exam Practice

When a salesperson is representing the seller, what fiduciary duty does the salesperson owe to the seller?

1. Duty of confidentiality

2. Duty of loyalty

3. Duty of disclosure

4. Duty of obedience

The correct answer is: Duty of loyalty

The duty of loyalty is a fundamental fiduciary duty that a salesperson owes to the seller. This duty requires the salesperson to act in the seller's best interest, prioritizing the seller's needs above their own or any third party's interests. Loyalty fosters trust in the relationship and ensures that the salesperson is dedicated to achieving the seller's goals, such as securing the best possible price for the property. In the context of real estate transactions, loyalty means the salesperson should not engage in self-dealing or take advantage of confidential information for personal gain. This foundation of trust and commitment is what enables effective representation and, ultimately, a successful transaction for the seller. It's essential in both legal and ethical realms to maintain this loyalty throughout the process.