What does "fiduciary duty" entail in a real estate transaction?

Fiduciary duty in a real estate transaction is fundamentally about the responsibilities an agent has towards their client. This duty encompasses several key principles, including loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting. Acting in the best interests of the client means that the agent must prioritize the client's needs and interests above all others, which is essential for maintaining a trustworthy relationship.

Loyalty ensures that the agent does not put their own interests ahead of those of the client. Confidentiality protects sensitive information, which must not be disclosed without the client's consent. By adhering to these principles, an agent can build a strong, ethical foundation for the transaction, ensuring that the client’s goals are achieved while upholding legal and professional standards.

This understanding of fiduciary duty is crucial in real estate dealings, where trust and confidence can have significant implications for the success of the transaction.