Question 161

The buyer-broker is acting as a representative of the buyer and owes no fiduciary obligations to the seller.

In this scenario, the buyer-broker serves as a representative of the buyer, focusing on their interests and needs during the property transaction. This role entails a duty to the buyer, without any fiduciary obligations to the seller.

A) subagent of the listing broker

This option is incorrect because a subagent typically represents the interests of the seller and works under the authority of the listing broker. In this case, the buyer-broker is advocating for the buyer, not acting in the capacity of a subagent.

B) referring broker with the listing broker

This option is not accurate as it implies that the buyer-broker is solely making a referral without directly representing the buyer. The buyer-broker is actively involved in facilitating the transaction on behalf of the buyer, thus going beyond merely referring.

C) representative of the buyer and owes no fiduciary obligations to the seller

This is the correct option as the buyer-broker is primarily representing the buyer's interests. In this role, the buyer-broker does not have any fiduciary responsibilities towards the seller, allowing them to focus solely on the buyer's needs and objectives.

D) representative of the seller and owes no fiduciary obligations to the buyer

This choice is incorrect as it inaccurately describes the buyer-broker's role. The buyer-broker is not representing the seller; rather, they are acting on behalf of the buyer, which involves a duty to the buyer and not to the seller.

Conclusion

The correct answer highlights the buyer-broker's role in representing the buyer and emphasizes the absence of fiduciary obligations to the seller. Options A, B, and D misrepresent the buyer-broker's responsibilities, while option C accurately reflects the relationship and duties within this real estate transaction context.