What are fiduciary duties in real estate agency?

Fiduciary duties in real estate agency refer to the obligations that an agent owes to their client, encompassing several critical elements. The components of fiduciary duties include loyalty, which ensures that the agent acts in the best interest of the client; disclosure, which requires the agent to inform the client of all relevant information; confidentiality, meaning that the agent must protect the client’s private information; obedience, which obligates the agent to follow the lawful instructions of the client; and accounting, which involves responsibly managing all funds and property entrusted to the agent by the client.

Understanding these fiduciary duties is essential for maintaining a trustworthy relationship between a real estate agent and their client, ensuring that the client's interests are prioritized throughout the transaction process. This foundation of trust and responsibility is vital for effective representation in real estate dealings.