Which action would constitute a breach of loyalty by a broker?

• A. If the seller's price is below market value and the broker buys the property at that price.
• B. If the broker refuses to show the property.
• C. If the broker negotiates a better price for the seller.
• D. If the broker advises the seller to increase price after a counteroffer.

Answer: (A)

Loyalty means the broker must act in the client’s best interest and avoid any self-dealing or conflicts of interest. If the seller’s price is below market value and the broker buys the property at that price for themselves, the broker is using the seller’s information to gain personally and undermines the seller’s opportunity to get fair value. That self-serving action directly violates the duty of loyalty.

The other scenarios don’t involve the broker advancing or protecting the seller’s best financial interest in the same self-serving way. Negotiating a better price for the seller and advising a higher price after a counteroffer are actions aimed at maximizing the seller’s benefit, which align with loyalty. Refusing to show the property could be for legitimate reasons and isn’t, by itself, a loyalty breach.