What kind of relationship must be disclosed between a realtor and a title company?

The correct response identifies the necessity to disclose a fiduciary relationship between a realtor and a title company. A fiduciary relationship involves a partnership based on trust where one party acts in the best interest of the other. In real estate transactions, realtors often have a duty to provide honest advice and promote their clients' interests. When a realtor has a fiduciary relationship with a title company, it typically means that they may have aligned interests or financial ties, which could influence their recommendations to clients.

Disclosing this relationship is crucial because it ensures transparency and builds trust with clients. They need to be aware if there is any potential conflict of interest that might affect the realtor's ability to represent their best interests. This disclosure upholds ethical standards and compliance with real estate regulations, ensuring clients can make informed decisions.

Understanding this adds an essential layer to the realtor's obligations under state law and helps safeguard the integrity of the transaction process.