The relationship between a real estate agent and a client is called a fiduciary relationship. Fiduciary means faithful servant, and an agent is a fiduciary of the client. In real estate, a broker or a salesperson can be the agent of a seller or a buyer
Here's a list of the fiduciary duties that an agent owes her client.
- Accounting: The agent must account for all funds entrusted to her and not commingle (combine) client/customer funds with her personal and /or business funds.
- Care: The agent must use all of her skills to the best of her ability on behalf of the client.
- Confidentiality: The agent must keep confidential any information given to her by her client, especially information that may be damaging to the client in a negotiation.
- Disclosure: The agent must disclose to the client any information she receives that may benefit the client's position in a negotiation.
- Loyalty: The agent owes undivided loyalty to the client and puts the client's interests above her own.
- Obedience: The agent must obey all lawful orders that the client gives her.