What does the term "fiduciary duty" refer to in real estate?

The term "fiduciary duty" in real estate refers to the obligation that real estate professionals, such as brokers and agents, have to act in the best interests of their clients. This duty encompasses a range of ethical and legal responsibilities, including loyalty, disclosure, confidentiality, and full disclosure. It signifies that the agent must prioritize the interests of their clients above their own, ensuring that they provide advice and services that align with the client's objectives and needs in a real estate transaction.

Fiduciary duty is foundational to the relationship between a client and their real estate representative, as it fosters trust and professionalism. For example, if an agent discovers information that could affect a property’s value, their fiduciary duty requires them to disclose that information to their client.

The other options touch on responsibilities that might be part of a real estate professional's role but do not fully capture the essence of fiduciary duty. While managing financial accounts, complying with property laws, and negotiating contracts are important aspects of a real estate broker's work, they do not encompass the overarching ethical obligation to act in the best interests of clients that defines fiduciary duty.