A broker has what duty to a third party?

The correct choice, full disclosure of all material facts, reflects the broker's obligation to provide important information that could affect the decisions of third parties involved in a real estate transaction. This duty is crucial in ensuring that all parties have access to relevant details that can influence their buying, selling, or leasing decisions.

This obligation stems from the principle of transparency in real estate dealings, where brokers must share information that could impact the value or desirability of a property. Failing to disclose material facts can lead to legal repercussions and undermine the trust between all parties in a transaction.

While the broker does have responsibilities toward their clients, including loyalty and a fiduciary duty, these duties primarily relate to the relationship with the client rather than third parties. The emphasis on full disclosure ensures that third parties are protected and informed, promoting fairness in the real estate market.