To whom does a broker owe fiduciary duties?

A broker owes fiduciary duties primarily to their clients. This relationship is built on trust and requires the broker to act in the best interest of the client. Fiduciary duties involve a commitment to honesty, loyalty, disclosure, confidentiality, and accounting, ensuring the client’s interests are prioritized throughout any transaction.

While the broker may interact with customers and other parties, the foundational legal obligation to provide fiduciary duties is strictly tied to the clients they represent. Clients expect that the broker will protect their interests, provide guidance in negotiations, and maintain a level of professionalism and ethical conduct that reinforces the trust placed in them.

The other options suggest relationships that do not embody the same level of legal and ethical commitment. For instance, a broker does not owe fiduciary duties to the real estate board or state licensing authority, as these entities function more as regulatory bodies rather than parties in a fiduciary relationship. Similarly, while a broker may have an employer, the fiduciary responsibility is not solely to them but rather to the clients they serve in a transaction. This illustrates the unique nature of fiduciary relationships in the real estate profession.