Licensee owes fiduciary duty to reveal all sources of income from the transactions to which party?

• A. Buyer
• B. Seller
• C. Brokerage
• D. Lender

Answer: (A)

The key idea is that fiduciary duties require you to disclose all compensation-related information to your client. When you represent a buyer, the buyer is the client, so you must reveal every source of income tied to the transaction to the buyer. This includes who pays your commission or any other fees, and whether there are referral fees or additional payments involved. The seller or a lender isn’t your client in that scenario, so there’s no fiduciary obligation to reveal income sources to them. If you were representing the seller instead, the disclosure would go to the seller. Thus, the party to whom all income sources must be disclosed in this context is the buyer.