A buyer, Peter, is interested in purchasing a commercial property in Red Deer. He approaches Frank, a real estate associate, and explicitly states he wants Frank to represent him and negotiate the best possible price. Frank agrees. What is the fundamental fiduciary duty Frank owes to Peter in this scenario, beyond simply providing information?

Question: A buyer, Peter, is interested in purchasing a commercial property in Red Deer. He approaches Frank, a real estate associate, and explicitly states he wants Frank to represent him and negotiate the best possible price. Frank agrees. What is the fundamental fiduciary duty Frank owes to Peter in this scenario, beyond simply providing information?

Answer options:

• To ensure Peter pays the highest possible price for the property to secure the deal.
• To disclose all confidential information about Peter to the seller to build trust and facilitate negotiations. ✅ To always act in Peter's best interests, including loyalty, confidentiality, and full disclosure.
• To remain impartial and balanced, treating Peter and the seller equally.

Correct answer: To always act in Peter's best interests, including loyalty, confidentiality, and full disclosure.

Explanation: By agreeing to represent Peter, Frank establishes an agency relationship. This relationship imposes several fundamental fiduciary duties on Frank, including loyalty, confidentiality, and full disclosure of all material facts relevant to Peter's interests, all aimed at acting in Peter's best interests. This is a core tenet of common law agency and RECA's Standards of Conduct.