In a real estate transaction, the relationship between a real estate agent and their client is called a fiduciary relationship. Whether the client is a buyer or a seller, here are some of the fiduciary duties that an agent owes their client:
- Confidentiality. Any information learned about the client’s affairs or motivation must be kept confidential.
- Care. The agent is required to provide services to the best of their ability on their client’s behalf.
- Accounting. An agent must account for all funds sent or received on behalf of their client.
- Loyalty. An agent must give their client undivided loyalty and act solely in their client’s best interests at all times.
- Obedience. The agent is obligated to promptly obey all lawful instructions given by their client.
- Disclosure. An agent is required to disclose all information they know about a property that might affect their client’s decisions.
While the agent’s main fiduciary duty is to represent their client, they must also deal fairly and truthfully with all parties in the transaction.
