What is a real estate broker’s fiduciary duty?

A real estate broker’s fiduciary duty is a responsibility to their client to act in the best interest of their client. Brokers have a responsibility to be honest and maintain confidentiality when working with clients. In California, brokers must abide by the Realtor® Code of Ethics, which requires brokers to act fairly, honestly and in the best interest of their client, regardless of the circumstance. More specifically, this fiduciary responsibility includes the following: informing clients of all material facts, helping clients understand offers and contracts, using reasonable care and skill when completing transactions, avoiding conflicts of interest, and promoting fair practices. A real estate broker must remain impartial and refrain from taking advantage of the client or any transaction. In the event a broker fails to meet the standard of care and breaches their fiduciary duty, the client may be able to pursue legal remedies. If a broker’s actions result in financial loss, a client is entitled to damages. Depending on the situation, a client may also have the right to have the broker’s commission refunded, seek compensation for emotional distress, or pursue additional damages. It is important to note that brokers are held to a higher standard when dealing with residential real estate in California. It is essential for buyers and sellers to understand the law and their rights pertaining to a real estate transaction. With this information, clients can protect their interests and hold brokers accountable for their fiduciary duty.

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What is a real estate broker’s fiduciary duty?

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