Who does a broker have a fiduciary duty to?

A broker has a fiduciary duty primarily to their clients. This means that the broker is legally and ethically obligated to act in the best interests of their clients. This duty encompasses several responsibilities, including loyalty, full disclosure, confidentiality, obedience, accounting, and reasonable skill and care in the performance of their duties.

Clients are individuals or entities that have formally engaged the broker's services, often through a signed agreement. The fiduciary relationship is established upon this engagement, creating a trust-based bond where the broker must prioritize the client's needs and goals above their own or the interests of third parties.

In contrast, customers do not have the same level of relationship with the broker as clients do; they may seek general assistance or information but lack the formal agency relationship that entails fiduciary responsibilities. Other brokers are not the focus of a fiduciary duty in terms of representation, and while a broker may respect competitors, they are not bound by fiduciary obligations to them. Finally, a broker's fiduciary duty is not limited to just buyers; it encompasses all clients, which can include sellers, landlords, and tenants, depending on the nature of the brokerage relationship.