Fiduciary Responsibility
You may have heard these words before – “Fiduciary Responsibility.” They sound pretty impressive, but what does it mean when your Realtor® assures you that they take their fiduciary responsibility very seriously? Let’s explore what we mean when we use these words.
The Meaning of Fiduciary Responsibility
Within the contract between the Realtor® and the client, the Realtor® is bound to serve as a fiduciary on behalf of their client. This means that they are trusted and duty-bound to show good faith. They must act with integrity and adhere to a high code of ethics in order to keep the trust of the clients that they serve.
The Six Fiduciary Duties of a Realtor®
It’s not just one thing. There are actually six components that make up the accepted fiduciary duties of your Realtor®. We can break them down into the following parts:
1. Loyalty
This is the most primary duty because most of the other five are contained within it. Your Realtor® promises to put your interests, as their client, above anyone else’s, including their own. This means considering and avoiding all conflicts of interest that may arise in the process of representing you.
2. Confidentiality
Once you sign on with a real estate professional, they accept the duty of confidentiality. They must protect your personal information. Aside from the obvious breach of privacy, sharing your personal or financial details may jeopardize your bargaining position in a real estate transaction.
3. Disclosure
While your real estate professional must keep your information private, they must share with you any details that are pertinent to the transaction. This may include information about the property, other interested parties, any underlying relationships, or intentions that may affect the buying or selling of the property.
4. Obedience
To the extent that the law allows, your Realtor® agrees to execute your orders as the client. There is no duty to act illegally, and this would be a breach of the obligation of Loyalty since it would not be in your best interest to break the law in a real estate transaction.
5. Reasonable Care and Diligence
This means that as a licensed professional, they agree to act to the best of their ability and training in all matters. This duty carries over into other professions and represents the type of expectations that we have of doctors, lawyers, accountants, and others that provide professional services.
6. Accounting
This obligation means that I will apply extreme care and responsibility to safeguard any money or documents that have been entrusted to them by their clients. You can expect those items to be protected within acceptable standards and never commingled with other funds or files.
7. The Importance of Fiduciary Responsibility
One of the things that drives my business transactions every day as a Realtor® is my commitment to my fiduciary responsibility. I love helping clients while achieving the satisfaction that comes from doing my best work. Earning the trust of people like you, and completing successful real estate transactions that make a real difference in your life is the number one reason I love being a Realtor®.