Under the common law of agency, which entity does a real estate broker primarily represent?

Study for the New Mexico Real Estate Exam. Use flashcards and multiple-choice questions, each with hints and explanations. Prepare effectively for your exam!

In the context of common law agency, a real estate broker primarily represents the seller. This long-standing principle establishes that the relationship between a broker and the seller forms the basis of the agency relationship, where the broker acts on behalf of the seller in transactions involving real property. This representation comes with a set of fiduciary duties, such as loyalty and disclosure, which prioritize the interests of the seller throughout the process.

While a broker can also represent buyers or facilitate transactions involving both parties, the default assumption in traditional broker-client relationships under common law is that the broker owes their primary allegiance to the seller who engages their services for the sale of property. Unless a specific agency relationship is established with the buyer or both parties in a dual agency arrangement, the broker's role is primarily that of the seller's agent.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy