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A fiduciary is a person that is charged with a property or part of another power. A real estate broker representing a seller or buyer is deemed a fiduciary. Other examples of fiduciaries are trustees, executors, and guardians.

The law stipulates that a real estate agent, as trustee, has certain duties to his client (the person you represent) in addition to the duties or obligations under the agreement between them – a contract to list the house (put in sale) the buyer representation agreement, or other contract of employment. Estes fiduciary duties are: loyalty, obedience, discovery, confidentiality, reasonable care and diligence, and accounting.

Loyalty

As one of the most fundamental fiduciary duties the agent owes his client the duty of loyalty requires that the real estate broker always acts in the interest of his client, excluding all other interests; include the interests of the corridor. In the area of real estate, striping agent (seller’s agent) is obliged to do everything possible to gain advantages for the seller, while a purchasing agent must do the same for the buyer.

Obedience

an agent is obliged to sell property quickly, obey promptly and efficiently all lawful instructions of his principal that conform to the objective of the relationship between them. Not including the obligation to obey unlawful instructions, such as misrepresenting a property or not to sell to minorities.

Discovery

an agent must disclose to his client all the essential information and relevant to the scope of the relationship. This includes any facts affecting the value or desirability of the property, as well as other relevant information relating to the transaction, as a strategy to negotiate with the other party or the consent of the buyer to offer a higher price, etc…

This discovery should not be confused with the duty of a real estate agent to find all facts relevant to the property itself. The duty to discover pertinent facts about the property, including defects, is based on the duty of a real estate agent to treat all people with honesty. The duty of honesty does not depend on the existence of relationship fiduciaries.

In practical terms, a sales agent must uncover any defects known to the property itself, but NOT to find information as a bad school system, a high rate of crime, declining values in the neighborhood, or traffic problems, since these can negatively influence Buyer desire to purchase the property. Next to the buyer, purchasing agent is required to tell the buyer everything you can find out about the seller, including their motivation and reasons to sell the property quickly, and property, including traffic problems, bad schools, and high rates the crime, etc…

Privacy

An agent is obligated to protect the secrets and confidences of his client. In this way a real estate broker must keep confidential any information that may weaken the position of his client to negotiate. The duty of confidentiality does not allow the selling agent discovers the buyer to the seller is willing to sell a property for less cash for homes than the asking price. For example, if the buyer knows that the property is for sale due to divorce or foreclosure, that information can give the buyer an advantage in price negotiations. Next to the buyer, purchasing agent can not reveal the seller or seller’s agent that the buyer is willing to pay more than what is offered by the property and stop repossession.

Reasonable Care and Diligence

An agent is obligated to use reasonable care and diligence in pursuing his client’s affairs. With his real estate license, a broker or real estate agent is considered to have the ability and competence in the field of real estate which is higher than the average person, and is expected to use that skill and expertise in representing his client in real estate affairs. However, the corridor is expected to do homework or take information out of their field of expertise (real estate) and services provided by other professionals – lawyers, engineers, accountants, etc. For issues outside the responsibility of the real estate broker, you should seek the help of another professional.

Accounting

An agent is obliged to account for all money, documents or property belonging to the principal and which has been entrusted.