What does "fiduciary duty" mean in real estate?

Fiduciary duty in real estate refers specifically to the obligation that a real estate agent or broker has to act in the best interests of their clients. This duty encompasses a range of responsibilities, including loyalty, confidentiality, full disclosure, and accountability. When an agent has a fiduciary relationship with a client, they are expected to prioritize the client’s needs and best interests above their own, ensuring that all actions taken in the course of the relationship are aligned with the client’s goals, whether they pertain to buying, selling, or managing a property.

This concept is critical because it builds trust in the agent-client relationship and establishes a standard for ethical behavior within the real estate profession. Agents who uphold their fiduciary duties can significantly impact their clients' satisfaction and success in real estate transactions. Understanding the significance of fiduciary duty is essential for both clients and real estate professionals, as it defines the expectations and legal obligations inherent in these relationships.