What is the fiduciary duty of an agent?

The fiduciary duty of an agent is fundamentally about loyalty and responsibility toward the principal. An agent is entrusted with the authority to act on behalf of the principal and must prioritize the principal's interests above their own or anyone else's. This includes a range of obligations, such as keeping confidential information private, disclosing material facts, and making decisions that reflect the best opportunity for the principal.

When an agent acts in the best interests of the principal, they establish a strong trust relationship, ensuring that the principal’s goals and objectives are met. This duty is critical in fostering client confidence in the agent's actions, promoting ethical behavior in professional dealings, and ensuring compliance with legal standards in real estate transactions.

Other options do not encompass the holistic nature of fiduciary duties. Negotiating for oneself contradicts the loyalty owed to the principal, managing financial records may be a responsibility of the agent but does not define the core fiduciary relationship, and effectively advertising properties, while important, does not specifically highlight the fiduciary duty being focused on the principal’s best interest.