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

The term 'fiduciary duty' primarily refers to the legal obligations that real estate professionals owe to their clients. In this context, fiduciary duty encompasses a range of responsibilities, including loyalty, confidentiality, full disclosure, and accountability. Real estate brokers and agents must act in the best interests of their clients, prioritizing their needs above their own. This trust-based relationship is fundamental to the practice of real estate, ensuring that clients receive fair representation and guidance.

While there are responsibilities towards fellow brokers, governmental bodies, and prospective buyers, these do not represent the core concept of fiduciary duty. The essence of fiduciary duty lies in the agent-client relationship, where the agent must not only provide competent service but also be honest and protective of their client's interests.