What are the Fiduciary Duties of a Real Estate Agent?

Tuesday Apr 19th, 2022

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If you are thinking about buying or selling a home, it is important to understand the fiduciary duties of a real estate agent. A fiduciary duty is a legal term that refers to a relationship of trust between two parties. In the context of real estate, the fiduciary duties of an agent are to represent the best interests of their client at all times. This can be a confusing concept, so in this blog post we will break down what it means for you as a buyer or seller.

What are the Fiduciary Duties of a Real Estate Agent?

A fiduciary duty is a legal obligation to act in the best interest of another person. There are three key fiduciary duties that a real estate agent owes to their clients: disclosure, loyalty, and obedience.

Disclosure means revealing all material facts about the property being sold. This includes disclosing any defects in the property, as well as any information about the seller or buyer that could affect the sale. It is important for agents to be truthful and accurate when disclosing this information so that buyers can make informed decisions.

Loyalty means putting the client’s interests ahead of their own. Agents must not disclose confidential information about their clients to others, or use their position to gain an advantage in a transaction.

Obedience means following the client’s instructions. Agents must carry out the wishes of their clients, even if they disagree with them.

These fiduciary duties are important for protecting the interests of buyers and sellers. By knowing what they are, agents can ensure that they are always acting in their clients’ best interests.

What is a Real Estate Agent's responsibility to you as a buyer or seller?

When it comes to real estate, agents have a fiduciary duty to their clients. This means that they are legally obligated to act in the best interest of their clients. As a buyer or seller, it's important to be aware of your rights and what you can expect from your agent.

Some of the responsibilities that agents have include:

- Advising you on how to best position your property for sale

- Helping you negotiate the best price and terms

- Securing the best mortgage rate possible

- Acting in good faith and disclosing all information that is pertinent to the transaction

- Handling all of the paperwork and transactions on your behalf

How can you protect yourself as a buyer or seller?

As a buyer, you should always be sure to get a copy of the agent's license. You should also ensure that the agent is affiliated with a reputable real estate company. As a seller, you should be sure to check the agent's references and reviews. You should also ask for proof of the agent's licensing and insurance.

You can also protect yourself by insisting on a written agreement with your agent. This agreement should outline the services that the agent will provide, as well as the payment terms. It is also important to remember that you have the right to terminate the agreement at any time, for any reason.

Finally, be sure to keep track of all communication between you and your agent. This will help you to resolve any disputes that may arise.

What happens when they don't fulfill these duties - what can you do about it?

If the duties of a fiduciary agent are not fulfilled, there can be legal consequences. The fiduciary agent can be held liable for any damages that occur as a result of their failure to act. This includes any financial losses that may occur. Furthermore, the fiduciary agent may also be held liable for any harm that is caused to the beneficiary as a result of their inaction. If you feel that a fiduciary agent is not fulfilling their duties, you can take legal action to hold them accountable. This may include filing a lawsuit or seeking arbitration. By taking this action, you can ensure that the fiduciary agent is held responsible for their actions and that they are not allowed to harm the beneficiary in any way.

What are some situations where your agent might not be fulfilling their fiduciary duties?

Some situations where an agent may not be fulfilling their fiduciary duties include when the agent is being paid by a third party to act in their own best interests instead of the interests of the party they are representing, or when the agent is not acting in good faith. Additionally, an agent may not be fulfilling their fiduciary duties if they are not making decisions that are in the best interests of the party they are representing, or if they are not providing complete and accurate information to that party. Finally, an agent may be in breach of their fiduciary duties if they are not managing the relationship in a way that is respectful and fair.

Conclusion

All in all, we hope this blog article helped you better understand the fiduciary duties of a real estate agent. Having said that, if you need help with buying, selling or appraising your home, contact us today. As a top real estate agent Mississauga provider we would be more than happy to help!

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