In an agency relationship, the primary ethical duty of a broker is to?

In an agency relationship, the broker acts on behalf of the principal, who is usually the client that has employed the broker's services. The primary ethical duty of a broker is to represent the interests of this principal. This means the broker must act in the best interest of their client, fulfilling fiduciary duties such as loyalty, confidentiality, and disclosure of relevant information pertaining to the transaction.

Choosing to represent the principal ensures that the broker is focused on doing what is necessary to benefit their client, whether that client is the seller or the buyer. This alignment of interest is fundamental to the trust and responsibility inherent in the agency relationship.

Options that suggest representing all parties or neither party do not accurately reflect the broker's obligation to prioritize and advocate for the interests of the principal specifically. The duty to disclose is important, but it comes secondary to the overall commitment to represent the principal effectively and ethically. Thus, the correct understanding revolves around the broker's duty to promote and protect the interests of their client in all real estate transactions.