What does the term "fiduciary duty" mean?

The term "fiduciary duty" refers to a legal obligation entrusted to one party to act in the best interest of another party. In the context of real estate, this means that professionals such as agents or brokers must prioritize their clients' needs and interests above their own. The fiduciary relationship is built on trust and confidence, which means that the agent is expected to provide advice and conduct transactions that are advantageous to the client, while also disclosing any conflicts of interest that may arise.

The essence of fiduciary duty encompasses various responsibilities, including loyalty, full disclosure, confidentiality, obedience, reasonable care, and accountability. All these components work together to ensure that the agent is acting in a manner that is ethical, responsible, and beneficial to the client.

In contrast, sharing client information publicly would violate the confidentiality expected within a fiduciary relationship. Similarly, while maximizing profits for an agency may be a business goal, it does not align with the primary responsibility of acting in the client’s best interest. Lastly, avoiding communication with clients would undermine the trust and relationship essential to a fiduciary duty, as ongoing communication is crucial to understand and address a client's needs and preferences.