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National curriculum lesson 93 · Agency

Agent Duties to Clients and Customers

Traditional fiduciary duties are commonly organized as obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care. Obedience extends only to lawful instructions. Loyalty and confidentiality do not permit fraud or concealment of material facts. Agents also owe nonclients honesty, reasonable care where required, proper accounting, and disclosures imposed by law.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

What is the exam-ready answer?

Traditional fiduciary duties are commonly organized as obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care. Obedience extends only to lawful instructions. Loyalty and confidentiality do not permit fraud or concealment of material facts. Agents also owe nonclients honesty, reasonable care where required, proper accounting, and disclosures imposed by law.
Official syllabus mapping for Agent Duties to Clients and Customers
Roadmap lesson93 of 500
Official syllabus topicAgent Duties to Clients and Customers
Official PSI areaAgency
Published area weight13% of the 100-question national portion
Exam portionNational salesperson portion
Source editionPSI Georgia Candidate Information Bulletin dated July 1, 2026
Last verifiedAugust 2, 2026

The Rule

PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.

Complete lesson

Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.

Obedience and loyalty

The agent follows lawful client directions within the agreement and places the client's interests ahead of the agent's own, including avoiding undisclosed self-dealing.

Disclosure and confidentiality

The agent discloses material information to the client while protecting confidential client information. Confidentiality can survive termination but does not cover a direction to misrepresent or conceal a fact that law requires disclosed.

Accounting

Money, documents, keys, and property entrusted to the agent must be safeguarded, recorded, and delivered according to the agreement and law.

Reasonable care

A licensee uses the competence and diligence expected in licensed practice, verifies when required, communicates offers and material developments, and refers matters beyond expertise.

Decision rule

Classify the duty, then test whether the client's instruction is lawful and consistent with required disclosure.

Georgia-specific distinction

Georgia rules require prompt presentation of offers, proper disclosure, accurate advertising, safeguarding of trust funds, and competent brokerage practice. A salesperson performs licensed activity through the affiliated broker and should escalate legal or procedural uncertainty.

Worked example

Scenario. A seller tells the listing agent not to mention a known hidden foundation failure to buyers.

Reason it through. Obedience applies only to lawful instructions, and loyalty does not authorize material misrepresentation or required-fact concealment.

Answer. The agent cannot follow the concealment instruction and should follow Georgia disclosure and broker-supervision requirements.

Common exam traps

  • Obeying unlawful instructions
  • Treating confidentiality as permission to conceal defects
  • Holding client money casually
  • Giving advice beyond competence

Original practice questions with detailed explanations

These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.

Question 1

Which duty requires placing the client's interest above the agent's?

  1. A. Loyalty
  2. B. Accounting
  3. C. Obedience
  4. D. Disclosure
Show answer and explanation →

Answer: A. Loyalty

Loyalty addresses conflicts and self-interest, though it remains bounded by law.

Question 2

Must an agent obey an instruction to misrepresent a fact?

  1. A. Yes
  2. B. No
  3. C. Only if written
  4. D. Only for vacant land
Show answer and explanation →

Answer: B. No

The duty of obedience covers lawful instructions only.

Question 3

Which duty applies to earnest money entrusted to a brokerage?

  1. A. Accounting
  2. B. Progression
  3. C. Substitution
  4. D. Escheat
Show answer and explanation →

Answer: A. Accounting

Accounting requires proper custody, records, and disposition of entrusted property.

Mastery tracking

Mark this lesson mastered only when every statement is true.

  • State the direct answer and decision rule without notes.
  • Explain every core concept in plain English.
  • Solve the worked example after changing one important fact.
  • Identify the Georgia distinction before reading answer choices.
  • Answer all three questions correctly and reject every distractor.
  • Repeat the topic in mixed practice on a later day.

Recommended next lesson

Continue with Agency Disclosures, Dual Agency, and Conflicts. Continue to roadmap lesson 94 and build on this decision rule.

Return to the Agency hub to see every official branch and the complete lesson sequence for this content area.

Agent Duties to Clients and Customers questions

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

Is Agent Duties to Clients and Customers on the Georgia real estate exam?

Yes. It belongs to PSI's Agency content area, which is 13% of the 100-question national portion. PSI publishes content-area weights, not a guaranteed question count for this individual lesson.

What is the main rule for Agent Duties to Clients and Customers?

Classify the duty, then test whether the client's instruction is lawful and consistent with required disclosure.

What Georgia-specific distinction should I remember?

Georgia rules require prompt presentation of offers, proper disclosure, accurate advertising, safeguarding of trust funds, and competent brokerage practice. A salesperson performs licensed activity through the affiliated broker and should escalate legal or procedural uncertainty.

How do I know I have mastered this lesson?

Explain the rule without notes, solve the worked example again with changed facts, answer all original questions correctly, explain every distractor, and repeat mixed practice on a later day.