Which term describes the broker's obligation to act with the principal's interests in mind, such as seeking the highest price for the property?

• A. Accountability
• B. Commingling
• C. Reasonable care
• D. Agency coupled with interest

Answer: (C)

Brokers owe fiduciary duties to their principals, including acting with reasonable care and skill to protect the principal’s interests. That means using professional judgment, market knowledge, and diligence to market the property, evaluate offers, and negotiate so the terms are as favorable as possible, which can include seeking the highest price. Reasonable care is the standard that governs whether the broker acts competently and in the principal’s best interest, guiding actions from pricing strategy to disclosures and negotiations. The other terms refer to different concepts: accountability is about keeping accurate records and reporting; commingling is the improper mixing of client funds with the broker’s own funds; agency coupled with interest describes a specific kind of agency relation where the broker has a personal stake, not the general duty to pursue the best outcome for the principal.