Question 34

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 the representative of the buyer, which means their primary duty is to advocate for the buyer's interests in the real estate transaction. Consequently, the buyer-broker does not owe fiduciary obligations to the seller.

A) subagent of the listing broker

This option is incorrect because a subagent of the listing broker would owe fiduciary duties to the seller, which contradicts the scenario where the buyer-broker represents the buyer’s interests exclusively.

B) referring broker with the listing broker

While this option suggests a relationship with the listing broker, it inaccurately describes the buyer-broker's role in this context. The buyer-broker is not merely referring clients but actively representing the buyer in the transaction.

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

This option is correct as it accurately reflects the buyer-broker's role in the transaction, emphasizing that their primary loyalty is to the buyer and that they do not have fiduciary responsibilities toward the seller.

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

This option is incorrect because it reverses the roles; the buyer-broker is not representing the seller but rather the buyer, thereby maintaining no fiduciary obligations to the seller.

Conclusion

The correct answer highlights the buyer-broker's obligation to the buyer, reinforcing the principle that agents must prioritize their client's interests. By identifying the buyer-broker as a representative of the buyer, it clarifies that they do not act on behalf of the seller, which is a crucial aspect of real estate agency relationships. All other options either misinterpret the nature of the buyer-broker's role or assign incorrect fiduciary duties.