What is a fiduciary duty in real estate?

A fiduciary duty in real estate refers to the obligation of agents to act in the best interests of their clients while maintaining a position of trust and confidence. This includes the necessity for agents to fully disclose any potential conflicts of interest that may arise during the course of their professional relationship. Such duties establish a legal and ethical standard that mandates agents prioritize their clients' needs above their own, ensuring transparency and fostering trust throughout the transaction process.

This concept is foundational in real estate practice, as it underscores the responsibility of agents to represent their clients' interests with care and loyalty. By adhering to fiduciary duties, agents help secure the best outcomes for their clients, reinforcing the principle that the relationship is built on trust and ethical considerations. This duty directly impacts how agents conduct negotiations, communicate with clients, and manage financial transactions, all aimed at achieving the client’s goals.