Which of the following is a fiduciary duty owed to a client by a licensee?

• A. Loyalty
• B. Honesty
• C. Fair dealing
• D. Obedience

Answer: (A)

Loyalty is the key idea here. In real estate, fiduciary duties require putting the client’s interests first and handling the relationship with trust. The duty of loyalty means the licensee must act solely in the client’s best interests, avoid conflicts of interest, and refrain from self-dealing or pursuing deals that benefit the licensee at the client’s expense. This client-first obligation is the essence of the fiduciary relationship and is commonly enumerated among the duties a licensee owes to a client.

Honesty and fair dealing are essential ethical standards, but they describe conduct rather than the specific fiduciary obligation. Obedience is also a fiduciary duty, but loyalty most directly captures the commitment to prioritize the client’s interests above all others.