What does the term 'fiduciary' refer to in real estate dealings?

The term 'fiduciary' in real estate dealings refers to a representative who has a legal duty to act in the best interest of another party. This relationship is built on trust and confidence, where the fiduciary is expected to prioritize the interests of the client above their own. In real estate, this typically applies to agents and brokers who represent buyers or sellers in transactions. Their role involves providing advice, disclosing information, negotiating on behalf of the client, and ensuring that the client's best interests are maintained throughout the process.

This concept is foundational in real estate practices, making it essential for real estate professionals to uphold these fiduciary duties to establish credibility and trust with their clients. Understanding this term emphasizes the responsibility agents have in managing a client's affairs and the importance of ethical conduct in real estate transactions.