What is meant by "fiduciary duty" in agency relationships?

Fiduciary duty in agency relationships refers to the legal and ethical obligation that an agent has to act in the best interests of their client. This fundamental principle requires the agent to prioritize the client's needs, preferences, and objectives above their own personal interests or any competing interests.

When an agent represents a client—whether in real estate or any other field—they are expected to provide loyalty and confidentiality while ensuring that the client receives the best possible outcomes. This includes a transparent communication process regarding all material facts and any potential conflicts of interest.

Understanding fiduciary duty is critical in real estate transactions, as it lays the foundation for trust and integrity in the agent-client relationship. Clients rely on agents not only for their expertise but also for their commitment to protecting the client's interests throughout all stages of the transaction.