Fiduciary duty
The legal duty an agent owes their client to act in the client's best interest. That includes loyalty, honesty, confidentiality, and accounting for money. It's the core of the client relationship.
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Where this comes up: getting ready
Part 1 of 4
Why a seller cares
It is the legal reason your agent has to put your interest first: loyalty, confidentiality, full disclosure, obedience, accounting. It is also the thing a transaction broker or a dual agent does not owe you.
Part 2 of 4
A simple example
You tell your agent you would take $290,000. Under fiduciary duty they keep that to themselves; a transaction broker may not be bound the same way.
| The duty | What it looks like |
|---|---|
| Loyalty | Your price, not their commission, drives the advice |
| Confidentiality | Your bottom line stays yours |
| Disclosure | They tell you what they know that affects the deal |
Fiduciary duty is the difference between an agent and a helpful person with a license.
Part 3 of 4
What people get wrong
That every licensed person in the deal owes it to you. Only your own agent does; the buyer's agent owes it to the buyer.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines fiduciary duty in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
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