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Alberta Real Estate Licensing Exam Practice · Question

An unrepresented buyer approaches a seller's designated agent directly to view a property. The agent clarifies that they represent only the seller. The buyer decides to proceed with an offer. Before presenting the offer, the agent advises the buyer on the pros and cons of certain financing options relevant to the property. Which fiduciary duty has the agent likely breached?

By advising an unrepresented buyer on personal financial matters such as financing options, the seller's agent has demonstrated a level of assistance or advice

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Question: An unrepresented buyer approaches a seller's designated agent directly to view a property. The agent clarifies that they represent only the seller. The buyer decides to proceed with an offer. Before presenting the offer, the agent advises the buyer on the pros and cons of certain financing options relevant to the property. Which fiduciary duty has the agent likely breached?

Answer options:

  • Confidentiality ✅ Loyalty
  • Care
  • Obedience

Correct answer: Loyalty

Explanation: By advising an unrepresented buyer on personal financial matters such as financing options, the seller's agent has demonstrated a level of assistance or advice that could be perceived as acting in the buyer's interest, thereby breaching loyalty to their principal, the seller. The agent's duty is to their client, not to the unrepresented party.

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