What is "fiduciary duty" in the context of real estate?

Fiduciary duty in the context of real estate refers to the legal and ethical obligation that an agent has to act in the best interest of their client. This relationship is characterized by trust and confidence, where the agent is expected to prioritize the client's needs and interests above their own. The fiduciary must provide loyalty, full disclosure, confidentiality, and the utmost care when dealing with the client's affairs.

This duty ensures that the agent works diligently to protect the client's interests throughout the buying or selling process, whether it involves negotiating terms of a sale or providing guidance on pricing strategies. It establishes a standard of conduct that governs how agents must interact with and represent their clients, reinforcing the idea that the client is entitled to the highest ethical consideration from their agent. While other responsibilities related to transactions, profit maximization, and property value maintenance are important in the real estate industry, the central aspect of fiduciary duty is the commitment to act in the client's best interest.