Fiduciary Duties of a REALTOR®
When a REALTOR® acts in an agency capacity for a buyer or seller, it becomes a fiduciary relationship. This means
that, by law, the REALTOR® owes specific duties to their principal. Here are what those duties include:
Confidentiality. The agent is obligated to keep confidential anything learned about their client, their business and
their financial affairs.
Obedience. An agent must obey all lawful instructions from the principal that conform to the purpose of the
Loyalty. This is one of the most important responsibilities of the agent. It obligates them to act – at all times – solely
in the best interests of their principal.
Reasonable Care. An agent is obligated to use reasonable care and diligence in pursuing the principal’s affairs.
Accounting. An agent must account for all documents and funds.
And lastly, disclosure. An agent is obligated to disclose all relevant and material information that the agent knows
that pertains to the scope of the agency relationship.
In most states, this agency relationship is created by a written Listing Agreement with a seller – or a Buyer Agency
Agreement with a buyer.