Which of the following accurately describes the agency relationship in real estate?

The agency relationship in real estate is defined by the duties and responsibilities that an agent has toward their client. In this context, the fiduciary duty is paramount. When an agent is engaged by a client—whether that client is a buyer, seller, or landlord—they are required to act in the best interests of that client. This duty encompasses loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting, ensuring the agent prioritizes their client's needs and objectives above all else.

By having a fiduciary duty, the agent is legally and ethically bound to protect the interests of their client. This includes providing relevant information, negotiating favorable terms, and maintaining the confidentiality of sensitive information. The obligation to uphold this duty solidifies the trust embedded in the agent-client relationship and distinguishes it from other professional relationships where such a commitment might not exist.

The other choices fail to accurately capture the essence of the agency relationship. For example, stating that the agent must treat all parties impartially overlooks the fiduciary duty to prioritize one client’s interests. Similarly, the assertion that an agent can represent multiple buyers without conflict does not account for the potential for conflicts of interest, which must be managed to maintain the integrity of the agency relationship.