Which of the following is a violation of fiduciary duties?

Study for the California Real Estate Broker Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Prepare efficiently and effectively for your licensing exam!

Fiduciary duties in real estate are foundational ethical and legal obligations that an agent has toward their client. These duties include loyalty, disclosure, confidentiality, accountability, and competence. Each of the actions listed represents a breach of these fiduciary responsibilities.

Failing to disclose known property defects is a significant violation because it directly undermines the trust that clients place in their agents. Real estate agents are required to inform their clients of any material facts that could affect a buyer's decision. Not disclosing issues like structural problems or environmental hazards can lead to serious consequences for both the buyer and the seller.

Keeping information from the seller is another breach of fiduciary duty, as it compromises the seller's ability to make informed decisions. An agent's duty to disclose pertinent information is essential for the seller to understand the full context of any offers or market conditions that may affect their property.

Overpricing a property can also be considered a violation of fiduciary duties. By setting an unrealistic price, an agent may mislead the seller about the potential market value, which could result in extended time on the market and possible financial losses. An agent has a duty to provide accurate market analysis to aid the seller in pricing their property appropriately.

Since each of these actions involves a failure

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