PSI Oklahoma Real Estate Practice Test

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Prepare for the Oklahoma Real Estate Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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In an agency relationship, what is the primary fiduciary duty of the agent?

To make a profit
To sell properties quickly
To look out for the principal's best interest
To provide legal advice

The correct answer is: To look out for the principal's best interest

The primary fiduciary duty of an agent in an agency relationship is to act in the best interest of the principal. This concept of fiduciary duty is fundamental in real estate transactions because it establishes a relationship of trust and confidence. The agent is obligated to prioritize the principal's needs and objectives above their own, ensuring that all actions and decisions they make benefit the principal. By looking out for the principal's best interests, the agent must provide honest advice, disclose material facts, and maintain confidentiality. This duty encompasses a range of responsibilities, including loyalty, obedience, and full disclosure, all of which reinforce the trust the principal places in the agent. In contrast, while making a profit might be a goal of the real estate transaction, it does not constitute the agent's primary fiduciary duty. Selling properties quickly could be a desirable outcome, but it is not inherently aligned with the best interests of the principal. Additionally, providing legal advice is a task typically reserved for licensed attorneys, as agents generally do not hold legal credentials necessary for such counsel. Thus, the focused commitment of the agent to prioritize and protect the principal's best interests is integral to the fiduciary relationship.