Which of the following is an exception to a broker's fiduciary duty?

A broker's fiduciary duty primarily revolves around the obligation to act in the best interests of their client while maintaining loyalty, confidentiality, and full disclosure. Each of the choices provided relates to these duties, but one stands out as an exception.

Keeping the seller's offers confidential is indeed an expectation of the broker, but it is viewed as an exception in the context of fostering transparency and fairness within the transaction. A broker must ensure that they are not disclosing sensitive information that could disadvantage their client, especially in competitive bidding situations. However, they must also balance this with the need to inform all parties involved where it serves the interest of the transaction itself.

In contrast, protecting the buyer's interests and disclosing any material defects are integral components of a broker’s fiduciary duties. These responsibilities highlight the broker's role as an advisor and advocate for their clients’ best interests. Maintaining agency confidentiality is another critical aspect of a broker's duties, as it ensures that all private information concerning the client remains protected during and after the transaction.

Thus, the confidentiality of offers is recognized as a narrow exception because of the delicate balance between confidentiality and the need for honest and fair negotiations among parties involved, making it the correct choice in this context.