In the seller-as-principal arrangement, what is the broker's role?

• A. Customer
• B. Client
• C. Fiduciary to the buyer
• D. Agent of the seller

Answer: (D)

In a seller-as-principal arrangement the broker acts as the seller’s agent. The seller, as the principal, designates the broker to market the property and negotiate on the seller’s behalf. The broker owes fiduciary duties to the seller—loyalty to the seller’s interests, confidentiality about pricing and strategy, obedience to lawful instructions, disclosure of relevant information that affects decisions, proper handling of funds, and the use of care and skill to secure favorable terms. The broker does not represent the buyer in this setup; representing the buyer would require a separate buyer representation or a dual-agency arrangement, which brings additional complexities. So, the broker’s role is to advocate for the seller as the agent.