What are the Fiduciary Duties of a Real Estate Agent?
During a real estate transaction, a client places special trust, confidence, and reliance on their real estate agent, forming a Fiduciary relationship.
Therefore, Real Estate Agents have some Fiduciary duties toward their clients.
- Confidentiality: Ensure protection of any information obtained from the client’s affairs or motivation.
- Accounting: Report promptly all monies and properties received and paid out.
- Obedience: Act, follow, and abide by all lawful instructions given by the client at all times.
- Full Disclosure: Disclose affirmatively all the information concerning the transaction, which might affect the client’s decisions.
- Undivided Loyalty: Never advance any interests adverse to the principal interest and always keep the client’s best interest in mind.
- Reasonable care: Offer the best possible services on their client’s behalf.
Fulfilling these duties without fail can result in the benefit of all parties involved in a real estate transaction.
