Explanations
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- When a listing agreement is signed, an agency relationship is officially created. In this relationship, the seller is the principal (client) who employs the broker. nnnn
- The broker (agent) owes a fiduciary duty to their principal. This duty requires the agent to act with utmost care, obedience, accounting, loyalty, and disclosure of material facts, prioritizing the client’s best interests above their own. nnnn
- Therefore, the fiduciary relationship is established between the broker and the seller, who is their principal in a listing agreement. n