Why did Broker Harvey comply with his principal's instructions regarding advertising?

Prepare for the South Dakota Real Estate Test. Ace your exam with flashcards and multiple choice questions. Each question is supported with hints and explanations to help you succeed!

Broker Harvey complied with his principal's instructions regarding advertising because he is legally obligated to follow the lawful directives of his principal. In the context of real estate and agency relationships, agents such as brokers owe a fiduciary duty to their principals (clients), which includes the responsibility to act in accordance with their requests, provided those instructions are lawful and ethical. This delegation of authority allows the agent to act on behalf of the principal in various matters, including marketing and advertising strategies.

By adhering to his principal’s instructions, Broker Harvey demonstrates his commitment to this fiduciary duty, ensuring that he aligns with the client’s goals and preferences in the sale process. This compliance builds trust between the broker and the client, which is essential for a successful working relationship in the real estate industry.

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