What does 'fiduciary duty' mean in the context of real estate?

In the context of real estate, 'fiduciary duty' refers to the obligation of a real estate agent to act in the best interest of their client. This concept is foundational in the relationship between agents and their clients, as it establishes a trust-based relationship where the agent must prioritize the interests of the client above their own.

Fiduciary duty encompasses several specific responsibilities, including loyalty, confidentiality, full disclosure, and accountability. These responsibilities ensure that the agent is fully committed to advocating for the client's needs, whether that involves negotiating the best price, safeguarding sensitive information, or providing accurate information about the transaction.

Understanding fiduciary duty is crucial for both agents and clients, as it delineates the ethical and legal standards expected in real estate transactions. This duty ultimately serves to protect clients and foster a trustworthy environment in which they can make informed decisions regarding buying or selling property.