A fiduciary duty is a legal obligation where one party, a principal, usually a buyer or seller, entrusts another party, typically a broker, to act in the principal’s best interests.
As explained in this video produced by the National Association of REALTOR® ‘s “Window To The Law”series
A real estate professional’s fiduciary duties to clients generally include:
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A duty of Loyalty – acting in the principal’s best interests to the exclusion of all other interests.
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A duty of Confidentiality – Protecting information affecting your principal’s bargaining position.
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A duty of Obedience – Promptly following your principal’s lawful instructions.
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A duty of Disclosure – Informing your principal all known relevant and material facts.
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A duty of Accounting – Keeping proper tabs on all money or property, and
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A duty of Reasonable Care – Pursuing your principal’s affairs with the standard expected of a competent professional.
In a related video, NAR General Counsel and Chief Member Experience Officer, Katie Johnson, explains the fiduciary duties that members serving on the board of directors of a REALTOR® association owe to the association.
https://www.nar.realtor/videos/fiduciary-duties-owed-by-directors-of-associations
