Fiduciary Duties Realtors Have to Their Clients
Cam Ward - REALTOR®
As real estate agents, we have a “fiduciary duty” when working for our clients. Simply put, this means we’re obligated legally to work in your best interest. According to NAR (National Association of Realtors), there are six fiduciary duties real estate agents owe their clients:
1. Loyalty
A duty of loyalty is one of the most fundamental fiduciary duties owed by an agent to his client. This duty obligates a real estate agent to act at all times solely in the best interests of his client to the exclusion of all other interests, including the agent’s own self-interest.
2. Confidentiality
An agent is obligated to safeguard his clients’ confidence and secrets. A real estate agent, therefore, must keep confidential any information that might weaken their client’s bargaining position if it were revealed.
3. Disclosure
An agent is obligated to disclose to his client all relevant and material information that the agent knows and that pertains to the scope of the agency.
4. Obedience
An agent is obligated to obey promptly and efficiently all lawful instructions of his client. However, this duty does not include an obligation to obey any unlawful instructions; for example, an instruction not to market the property to minorities or to misrepresent the condition of the property.
5. Reasonable Care and Dilligence
The standard of care expected of a real estate agent representing a seller or buyer is that of a competent real estate professional. By reason of their license, a real estate agent is deemed to have skill and expertise in real estate matters superior to that of the average person, and is dutybound to use their superior skill and knowledge while pursuing their c;lient’s affairs.
6. Accounting
An agent is obligated to account for all money or property belonging to his client that is entrusted to them. This duty compels a real estate broker to safeguard any money, deeds, or other documents that relate to their client’s transactions or affairs.
Simple examples of how these duties impact your experience with a real estate sales agent include the following:
Showing you homes within your budget
Suggesting what to offer on a home
Advising what additional terms may be included in a contract
Bringing you all offers to purchase your property
Reviewing any facts affecting the value of a property
Advising you about the condition of a home
At The Alms Group, we take our fiduciary responsibilities seriously. We’re committed to providing you the tools, resources, and advice you need to make sound decisions and take informed action with regard to your real estate transaction.
Source: “Risk Management & License Law Forum: Fiduciary Duties.” National Association of Realtors. 15 May 2013, https://www.nar.realtor/sites/default/files/handouts-and-brochures/2014/nar-fiduciary-duty-032213.pdf.
