What does the term "fiduciary" mean in real estate?

In the context of real estate, the term "fiduciary" refers to a relationship of trust and confidence, typically established between a real estate agent and their client. This relationship obligates the agent to act in the best interests of the client, prioritizing the client's needs and welfare above their own. This duty encompasses various responsibilities, including loyalty, full disclosure, confidentiality, obedience, reasonable care, and accounting.

When a fiduciary relationship is established, the agent is expected to provide guidance, share pertinent information, and navigate transactions with integrity, ensuring that the client's interests are safeguarded throughout the process. This fundamental aspect of real estate practice reinforces the importance of ethical standards and professional conduct within the industry.