In real estate, what is a fiduciary duty?

In the context of real estate, a fiduciary duty is defined as a responsibility to act in the best interest of clients. This relationship is built on trust and loyalty between the agent and the client, typically manifested when an agent is representing someone in a transaction. The agent is expected to prioritize the client's needs and interests above their own, ensuring that their actions align with what is best for the client throughout the real estate process. This duty encompasses various aspects, including confidentiality, full disclosure, loyalty, and the duty to account for all funds.

This commitment is crucial for maintaining ethical standards in real estate transactions, as it fosters confidence and protection for clients relying on the expertise and guidance of their real estate agents. Therefore, the focus on the agent's responsibility to the client is what solidifies the notion of fiduciary duty in the profession.