Fiduciary Duties Realtors Have to Their Clients
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 the NAR Code of Ethics (updated 2026), there are six fiduciary duties real estate agents owe their clients.
It's worth noting that recent changes to how real estate transactions work — including the requirement that buyers sign a written Buyer Representation Agreement before touring homes — have made these duties more explicit than ever. When you sign that agreement with your agent, it formally establishes the fiduciary relationship and puts your agent's obligations to you in writing before a single showing.
The Six Fiduciary Duties
1. Loyalty
A duty of loyalty is one of the most fundamental fiduciary duties owed by an agent to their client. This duty obligates a real estate agent to act at all times solely in the best interests of their client to the exclusion of all other interests, including the agent's own self-interest.
In practice, this means your agent cannot steer you toward a home because it offers a higher commission, or away from a home because it offers a lower one. The written Buyer Representation Agreement introduced as part of the 2024 NAR settlement reinforces this duty — by making compensation fully transparent upfront, it removes the financial conflicts of interest that have historically put loyalty at risk.
2. Confidentiality
An agent is obligated to safeguard their client's confidence and secrets. A real estate agent must keep confidential any information that might weaken their client's bargaining position if it were revealed.
For buyers, this means your agent cannot disclose to a seller how high you're willing to go. For sellers, it means your agent cannot tell a buyer why you're selling or how motivated you are to close — unless you explicitly authorize them to.
3. Disclosure
An agent is obligated to disclose to their client all relevant and material information that the agent knows and that pertains to the scope of the agency.
Under the NAR Code of Ethics updated in 2026, disclosure obligations are specifically directed toward the agent's own client. This reflects the current structure of real estate transactions, where each party is represented by their own agent — and each agent's primary obligation is to inform the person they represent. Your agent is not required to share information about your representation agreement with the other party, but they are absolutely required to keep you fully informed throughout your transaction.
4. Obedience
An agent is obligated to obey promptly and efficiently all lawful instructions of their client. However, this duty does not include an obligation to obey 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 Diligence
The standard of care expected of a real estate agent is that of a competent real estate professional. By reason of their license, a real estate agent is deemed to have superior skill and expertise in real estate matters compared to the average person.
This duty covers everything from accurately pricing your home to correctly interpreting contract terms, understanding inspection reports, and meeting critical deadlines. It's the duty that separates an experienced local agent from simply going it alone.
6. Accounting
An agent is obligated to account for all money or property belonging to their 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.
Earnest money deposits, escrow funds, and closing documents all fall under this duty. Your agent is responsible for ensuring these are handled properly and never commingled with operating funds.
Practical Examples
Simple examples of how these duties impact your experience with a real estate agent include:
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
Being transparent about how they are compensated before you commit to working with them
What This Means for You
Understanding your agent's fiduciary duties puts you in a stronger position as a buyer or seller. You have the right to expect loyalty, honesty, discretion, and competence from the person representing you — and if something doesn't feel right, it's always appropriate to ask your agent to explain how they're fulfilling these obligations on your behalf.
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.
A note on Kansas law: In Kansas, brokerage relationships and agent duties are governed by the Brokerage Relationships in Real Estate Transactions Act (BRRETA), overseen by the Kansas Real Estate Commission (KREC). Kansas law requires your agent to provide you with the BRRETA brochure at the first practical opportunity — ask your agent for a copy if you haven't received one. The duties described in this post reflect both NAR professional standards and Kansas statutory obligations. For more information, visit krec.ks.gov.
