What is a fiduciary duty in real estate transactions?

A fiduciary duty in real estate transactions refers to the obligation of a real estate agent or broker to act in the best interests of their client. This relationship is built on trust, and the agent is expected to prioritize the client's needs and interests above their own. The fiduciary duty encompasses various responsibilities, including loyalty, confidentiality, full disclosure, obedience, accounting, and reasonable care. By prioritizing the client’s interests, the agent helps to ensure that the client’s objectives are met throughout the transaction process.

While the other options mention important responsibilities within real estate transactions, they do not encapsulate the essence of fiduciary duty. Disclosing all fees, obtaining a client's signature, and handling paperwork are all practical aspects of a real estate transaction but do not reflect the core principle of fidelity to the client's interests that defines fiduciary relationships.