What does “fiduciary duty” mean in real estate?

Fiduciary duty in real estate refers to the obligation of a broker to act in the best interest of their client. This foundational principle is essential to the agent-client relationship and mandates that the broker maintain loyalty, protect confidential information, and provide diligent and competent service. The broker must prioritize their client's interests above their own or those of other parties involved in the transaction.

This duty encompasses several responsibilities, including providing full disclosure, avoiding conflicts of interest, and ensuring that the client’s needs and objectives are met throughout the real estate transaction. The fiduciary relationship is built on trust and confidence, ensuring that the agent represents the client's best interests at all times.

Understanding fiduciary duty is crucial for real estate professionals, as it establishes the ethical framework within which they operate, thereby fostering trust and professionalism in the industry.