Short Answer
A fiduciary duty is a legal obligation that a real estate agent owes to their client to act in the client's best interest. It includes duties of loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting. When you sign a representation agreement with an agent, they become your fiduciary and must put your interests above their own and above the interests of other parties. This is a higher standard of care than what is owed to a customer.
Fiduciary duty is the foundation of the agent-client relationship. The six main duties are loyalty, meaning the agent must put your interests first; confidentiality, meaning they cannot share your private information without permission; disclosure, meaning they must disclose all material facts that could affect your decision; obedience, meaning they must follow your lawful instructions; reasonable care and diligence, meaning they must be competent and thorough; and accounting, meaning they must handle your money and documents properly. These duties apply as soon as you sign a representation agreement. Before signing, the agent is limited in what they can do for you. In New Jersey, agents must disclose their agency relationship to all parties in writing. If an agent breaches their fiduciary duty, you may have legal recourse through the Real Estate Commission or the courts. Understanding what your agent owes you helps you know what to expect and when to hold them accountable.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
When you work with me, you are not just a customer. You are a client, and I owe you a fiduciary duty. That means your interests come first, always. I will be honest with you even when it is hard, I will keep your information confidential, and I will follow your instructions. It is a responsibility I take very seriously. If you ever feel like your agent is not putting your interests first, you have the right to ask questions and expect answers.
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