What is meant by "fiduciary duty" in real estate?

The term "fiduciary duty" in real estate refers to a legal obligation where one party, typically an agent or broker, must act in the best interests of another party, often the client or principal. This duty encompasses a variety of responsibilities, including loyalty, confidentiality, full disclosure, obedience, and accounting. The essence of fiduciary responsibility is to ensure that the agent prioritizes the client's needs and welfare above their own interests.

In real estate transactions, agents are expected to provide honest advice, avoid self-dealing, and disclose any conflicts of interest. This commitment to the client's best interest helps build trust and promotes ethical practices within the industry. It is fundamental for agents to maintain this duty throughout the entire process of a transaction, from listing to closing, to safeguard the interests of their clients effectively.