What is a real estate broker’s fiduciary duty?

A real estate broker’s fiduciary duty is a legal responsibility to act in the best interests of their client. This includes using honest practices, such as disclosing all pertinent information to the client, avoiding conflict of interest, keeping confidential information private, and providing honest advice. In Washington, real estate brokers licensed by the state must obey certain laws and regulations which protect the client’s interests, such as the Real Estate Brokerage Act. This act states that brokers must provide a full and fair disclosure of all terms and conditions of a real estate transaction to their clients. The law also states that brokers must put the client’s interests first and not accept any form of compensation from a third-party. In addition to the statutory fiduciary duty, brokers must use reasonable care and skill when performing any tasks related to real estate transactions. This means that they must investigate all facts related to the transaction and pay attention to potential risks and conflicts of interest. Considering the importance of this legal responsibility, it is essential for a real estate broker to understand the state laws and regulations in order to properly fulfill their fiduciary duty. If a real estate broker fails to fulfill their fiduciary duty, they can face significant legal consequences.

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What is a real estate broker’s fiduciary duty?

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