What does the term “fiduciary” refer to in the context of real estate agents?

In the context of real estate agents, the term "fiduciary" refers to a trusted relationship in which the agent is legally and ethically obligated to act in the best interests of their client. This involves a duty of loyalty, responsibility, and care, meaning the agent must prioritize the client's needs and interests above their own.

The fiduciary duty encompasses several responsibilities, including full disclosure of relevant information, confidentiality, accounting for funds, and acting within the scope of authority. This principle is fundamental to establishing trust and ensuring that clients can rely on their agents to handle transactions with integrity and in line with the client's goals.

In contrast to the other options, a fiduciary relationship does not pertain to insurance, payment arrangements, or the property itself, making it a unique and essential concept in real estate practice.