What Are Fiduciary Duties

A fiduciary is a person (real estate agent) that holds a legal or ethical relationship of trust with another individual (client). Put more plainly, as a real estate agent it is my duty to always act with your best interests in mind. Fiduciary duties are a set of responsibilities initially outlined by the National Association of REALTORS® that have been codified by state law. There are six fiduciary duties:

Obedience: Real estate agents must obey all instructions given by a client that are lawful.

Loyalty: Real estate agents must always act in the best interests of their clients over all other interests, including their own. This duty also covers conflicts of interest. An agent cannot be employed by multiple clients that directly compete. This is why Kansas does not allow duel agency, where a single agent represents both the buyer and seller in a transaction.

Disclosure: Real estate agents must disclose all relevant and material information that falls within the agency agreement. Material information includes anything that would sway a buyer’s decisions when making an offer. For instance, does the roof leak or does the home have plumbing issues?

Confidentiality: Real estate agents must safeguard any information about the client that could weaken the clients bargaining position. For example, an agent cannot disclose that a seller is willing to accept less, or that a buyer is willing to pay more. However, confidentiality does not allow the seller to withold material facts or misrepresent the condition of the property.

Accounting: Real estate agents must account (keep track of) any documents, money, or possessions of the client they are entrusted with.

Reasonable care and diligence: Real estate agents must represent their client in a competent manner expected of a professional.