What is a real estate broker’s fiduciary duty?

A real estate broker’s fiduciary duty is the obligation of a real estate broker to act in the best interest of their client. It is also known as a duty of loyalty and is designed to protect buyers and sellers from unfair or unethical practices when buying or selling a residential property. In the District of Columbia, brokers are required to abide by statutes and regulations established by the District of Columbia Real Estate Commission (DCREC), which govern the activities of brokers. The most important of a real estate broker’s fiduciary duty is to stay loyal to the client’s interests. This means that the broker should not have any hidden interests in the transaction, and they must always put their client’s interests first. A broker must be honest in their dealings and never make misleading statements or omit important information. This ensures that the buyer or seller is not taken advantage of during a sale. Additionally, brokers are expected to act in good faith and to use reasonable care and skill in all their activities. This includes monitoring contracts and other documents to ensure that all legal requirements are met and that the transaction is fair and reasonable. Brokers also must negotiate fairly on behalf of their clients and not act in any way that would be perceived as placing their own interests ahead of their client’s. In the District of Columbia, real estate brokers are held to a high standard of professional conduct. They must adhere to these standards in order to protect and benefit their clients. Failure to do so can result in disciplinary action, including suspension or revocation of their license.

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What is a real estate broker’s fiduciary duty?

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