If an agent does not inform a minority buyer that a property is under contract as instructed by the principal, what is the agent's liability?

In this scenario, the agent has a fiduciary responsibility to act in the best interest of their principal while also obeying the law. If the agent does not inform the minority buyer that a property is under contract, it indicates that the agent might be adhering to the principal's instruction. This means that the agent has not necessarily violated their fiduciary duty under the circumstances outlined because they are following orders from the principal.

Understanding fiduciary duties involves recognizing that agents must maintain loyalty to their clients, which includes obeying their instructions as long as those instructions are lawful. Thus, if the principal instructed the agent not to disclose that the property is under contract, the agent is acting within the bounds of their duty by following those instructions. This highlights the complexities involved in real estate transactions and reinforces the need for agents to ensure compliance with both ethical and legal standards while managing their duties to clients.