What should agents do regarding the directions of their principal?

Study for the ASU REA380 Exam 2. Prepare with flashcards and multiple choice questions, each question includes hints and explanations. Get ready for success!

Agents are obligated to follow the directions of their principal because they are acting on behalf of that principal in a fiduciary capacity. This means that agents must prioritize the interests and directives of their principal above their own. The duty to adhere to the principal's instructions is foundational to agency law and establishes the trust that allows the agency relationship to function effectively.

In real estate, for instance, an agent is responsible for implementing the marketing strategies, sale negotiations, and other directives specified by their clients. This follows the principles of loyalty and obedience, which are essential in maintaining the integrity of the agent-principal relationship. By following directions, agents ensure that they are aligned with their principal's goals, whether those involve pricing strategies or showing properties.

While negotiating, advising, and consulting are important aspects of an agent's role, they do not replace the imperative of following the principal's instructions. An agent may provide advice or negotiate terms based on expertise, but ultimately, the agent must respect and act according to what the principal has decided or instructed. This is why following directions stands as the most critical responsibility in the context of the agency relationship.

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