Real Estate AGENT – What is an agent?

Real estate agents, as licensed professionals, have fiduciary duties to their clients. The National Association of Realtors binds agents by a code of Ethics. If an agent is not a member (REALTOR(r)) they still owe clients fiduciary duties. These duties are legal and ethical obligations that require agents to act in the best interests of their clients. Here are the key fiduciary duties of a real estate agent:

1. Loyalty: Real estate agents must be loyal to their clients and prioritize their clients’ interests above their own. This means avoiding conflicts of interest and not taking actions that could compromise the client’s position.
2. Disclosure: Agents have a duty to disclose all relevant information to their clients. This includes any potential conflicts of interest, information about the property or the transaction, and any other details that could impact the client’s decision-making process.
3. Confidentiality: Real estate agents are privy to sensitive information about their clients and their transactions. They must maintain confidentiality and not disclose any information without the client’s consent, except when required by law.
4. Obedience: Agents must obey their client’s lawful instructions. This means following the client’s directions in the real estate transaction, as long as those instructions are legal and ethical.
5. Reasonable Care and Diligence: Real estate agents are expected to exercise reasonable care and diligence in their work. This includes staying informed about the real estate market, property values, and relevant laws and regulations. Agents should also diligently work to meet their clients’ goals.
6. Accounting: Agents are responsible for handling their clients’ funds and property with care. They should keep accurate records of all transactions and financial dealings related to the client’s property or transaction.
7. Skill and Competence: Real estate agents are expected to have the necessary knowledge and skills to provide competent representation to their clients. This involves understanding the real estate market, contracts, and other relevant aspects of the industry.

These fiduciary duties create a relationship of trust and confidence between the real estate agent and the client. Violating these duties could lead to legal consequences and damage the agent’s professional reputation. It’s important for both parties to clearly understand and agree to these obligations at the beginning of their working relationship. The agents of ERA Town & Campus Realty are thoroughly trained and reminded of just what these duties mean and stand for. It’s our standard of business.