Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Which of the following is NOT included in the fiduciary duties owed by a broker?

1. Disclosure of information affecting the client's decisions

2. Loyalty to the client's interests

3. Advising clients to take risks

4. Fair and honest dealing

The correct answer is: Advising clients to take risks

The answer regarding which choice is not included in the fiduciary duties owed by a broker is correct. Advising clients to take risks does not align with the core principles of fiduciary duty, which focuses on acting in the best interests of the client and providing guidance that safeguards their interests. Fiduciary duties include several essential responsibilities that a broker must uphold to maintain trust and protect their clients. One of these duties is the disclosure of information affecting the client's decisions. Brokers are expected to provide all relevant information that could influence a client's choice, ensuring clients can make informed decisions based on the complete picture. Another key duty is loyalty to the client's interests. This means that brokers must prioritize their client's needs over their own or any third parties. This loyalty ensures that recommendations made by the broker truly reflect what is best for the client, rather than being influenced by conflicts of interest. Additionally, fair and honest dealing is crucial in a broker's fiduciary relationship. Brokers must engage with their clients in a transparent manner, ensuring that their actions are ethical and that clients are treated fairly throughout the transaction process. In contrast, advising clients to take risks is not a fiduciary duty. While clients may want to explore risky ventures, it is not the broker's role to