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

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

• A. The buyer
• B. The seller
• C. Both the buyer and seller
• D. The transaction

Answer: (B)

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.

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.