Oregon 30-Hour Real Estate Law Practice Test

What exemplifies the duty of loyalty in a client-agent relationship?

1. Ensuring all offers are presented

2. Negotiating commission rates

3. Putting the client's interests first

4. Providing detailed market analysis

The correct answer is: Putting the client's interests first

The duty of loyalty in a client-agent relationship is fundamentally about prioritizing the client's interests above all else. This duty obligates the agent to act in the best interest of the client, ensuring that decisions and actions promote the client's goals. This means that any personal interests, such as potential profits or relationships with other parties, should never take precedence over what benefits the client. For example, when an agent is aware of a property that may be of interest to their client, their responsibility is to present that property and advocate for the client's position. The agent should avoid any actions that may mislead the client or fail to disclose information that could affect the client's choice. While ensuring all offers are presented, negotiating commission rates, and providing detailed market analysis are all important aspects of an agent’s responsibilities, they do not capture the essence of loyalty. The essence lies in unwavering commitment to putting the client first in every decision made within the professional relationship.