Oregon 30-Hour Real Estate Law Practice Test

What term describes the duties provided by Brenda to Tina in their real estate transaction?

1. Agency

2. Liability

3. Contractual

4. Fiduciary

The correct answer is: Fiduciary

In a real estate transaction, the term that best describes the duties provided by one party to another is "fiduciary." A fiduciary relationship entails a legal or ethical obligation for one party to act in the best interest of another. In this context, if Brenda is providing specific duties to Tina, these responsibilities are likely centered around trust and confidence, where Brenda is expected to prioritize Tina’s interests in the transaction. In real estate, fiduciary duties typically include loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting. This is particularly relevant when one party, such as Brenda, is acting in a capacity that requires her to represent and protect the interests of Tina, such as in agency roles like a real estate broker working for a client. While other terms could relate to responsibilities and legal obligations, they do not capture the essence of the trust and responsibility that defines a fiduciary duty. For example, "agency" refers to the broader relationship where one party acts on behalf of another, but it does not explicitly convey the depth of the ethical commitment inherent in fiduciary duties. Similarly, "liability" refers to the potential legal responsibility for actions taken but lacks the emotional and ethical dimensions. "Contractual" duties are based on the agreements