If you’re buying or selling a home, you’ve likely heard the term “fiduciary duty” thrown around by your real estate agent or broker. But what does it actually mean? And why is it important to you as a client?
In simple terms, fiduciary duties are the legal and ethical responsibilities that a real estate agent owes to their client. These duties exist to ensure that your agent acts in your best interest throughout the transaction. Think of it as the highest level of loyalty and care that one person can owe to another in a professional setting.
The 6 Core Fiduciary Duties
Real estate agents are bound by six core fiduciary duties:
1. Loyalty
Your agent must always put your interests above their own. This means no double-dealing or self-serving behavior. If there’s a conflict of interest, it must be disclosed immediately.
2. Confidentiality
Anything you share with your agent—your budget, motivations, financial situation—must be kept strictly confidential, even after the transaction ends. This protects your negotiating position.
3. Disclosure
Your agent is required to disclose any information that could affect your decision in the transaction. This includes issues with the property, knowledge about market conditions, or details about the other party’s situation—if legally permissible.
4. Obedience
As long as your instructions are legal and ethical, your agent must follow them. Want to submit a lowball offer? Want to walk away from a deal? Your agent is there to represent your wishes.
5. Reasonable Care and Diligence
A real estate professional is expected to perform their duties with the care and skill that a reasonable agent would provide. This includes staying informed about market trends, using proper documentation, and protecting you from foreseeable risks.
6. Accounting
Your agent must properly account for all funds and property entrusted to them during the course of the transaction. This includes earnest money deposits, transaction records, and any personal property involved in the sale.
Why It Matters
These fiduciary duties form the foundation of trust between you and your real estate agent. They ensure that you’re getting fair, honest, and skilled representation from someone who is legally obligated to protect your interests.
Whether you’re buying your first home or selling your third, understanding these duties empowers you to hold your agent accountable—and gives you peace of mind knowing that someone has your back.
Final Thoughts
Hiring a real estate agent isn’t just about finding someone who knows the local market—it’s about choosing someone who is legally and ethically committed to you. By understanding fiduciary duties, you’re better equipped to make informed decisions and navigate the real estate process with confidence.
📩 Looking for a local agent who takes these responsibilities seriously? Let’s talk!
860-864-0209
chrismaynard@billheenan.net
chrismaynardrealestate.com
Learn more about buying or selling
Search for your dream home
