PSI Virginia Real Estate Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

The duty of loyalty for a real estate agent primarily means acting in the best interests of the principal, which is typically the client or party the agent is representing. This duty obligates the agent to prioritize the needs, goals, and interests of their client over their own interests or the interests of other parties. The concept is rooted in trust and fiduciary responsibility, wherein the agent must ensure that their actions benefit the client and align with what is stipulated in the agency agreement.

By placing the principal's interests above all others, the agent fosters a relationship built on trust and transparency, which is crucial for maintaining professional integrity in real estate transactions. This principle underscores the importance of ethical conduct and reinforces the idea that agents must avoid conflicts of interest, ensuring that any decisions made serve the client’s best outcomes without diversion towards personal gain or outside influences.