{"id":1050,"date":"2020-10-30T06:00:23","date_gmt":"2020-10-30T10:00:23","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1050"},"modified":"2024-04-25T23:20:28","modified_gmt":"2024-04-26T03:20:28","slug":"your-real-estate-agents-fiduciary-duties","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/your-real-estate-agents-fiduciary-duties\/","title":{"rendered":"Your Real Estate Agent\u2019s Fiduciary Duties"},"content":{"rendered":"\n

How Do Professional Ethics Come Into Play in the Real\nEstate Deal?<\/em><\/strong><\/p>\n\n\n\n

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When you sign a contract to have an agent represent you in a\nreal estate transaction, your agent agrees to a set of fiduciary duties. Essentially\nthis means the agent you hire must act in your best interest.<\/p>\n\n\n\n

This is only the case if you and the agent signed an agency\nagreement, naming you<\/em> as the agent\u2019s client. It\u2019s vital that you know if\nyour broker is also your agent. Check your contract. Note, too, that the\nagent\u2019s fiduciary duties must be followed, as long as you are the client \u2014 whether\nor not they are fully laid out in your agency contract. <\/p>\n\n\n\n

The key specifics of a agent\u2019s duties to the client appear\nin your state\u2019s real estate statute. But in general, fiduciary duties are the\nhighest of legal standards. Think of trustees, guardians, and personal\nrepresentatives. To act on another\u2019s behalf requires an unwavering sense of\nethics and care.<\/p>\n\n\n\n

The following are the fiduciary duties an agent must model. <\/p>\n\n\n\n\n\n\n\n

Client First: The Duty of Loyalty <\/h2>\n\n\n\n

In representing you, your agent may not put their interests ahead\nof yours. Whether you\u2019re the seller or the buyer, your agent steps into your\nshoes when negotiating and leveraging opportunities. <\/p>\n\n\n\n

For example, your agent cannot rise to a meet competing\noffer just because that means a higher commission. Another example of\ndisloyalty involves the agent who buys your property, then flips it for a\nhigher price. House-flipping is fine and legal when the parties aren\u2019t\nconnected, but a fiduciary who flips your house is stealing your opportunity.<\/p>\n\n\n\n

Following Through: The Duty of Obedience <\/h2>\n\n\n\n

A closely related fiduciary duty is obedience. As long as\nyou adhere to the limits of your contract with your agent, and you aren\u2019t\nasking that anything be done unethically, your agent must carry out your\ninstructions.<\/p>\n\n\n\n

Can an agent agree to a lower price than you said you\u2019re\nwilling to pay? No. The agent can advise you to be more flexible about the\nprice, but cannot negotiate outside your set limits unless you agree to change\nyour mind.<\/p>\n\n\n\n

Can a seller\u2019s agent refuse to lie for the seller about a\nrecurring flood problem in the basement? Yes. Should a buyer\u2019s agent let the\npotential buyer know if the agent spots evidence of sinkholes on the property?\nYes. <\/p>\n\n\n\n

If an agent is wondering whether some issue with the home\nshould be disclosed to the buyer, the right action is always disclosure. It\nmight just be a minor thing, but the buyer should have the opportunity to\ndecide. There are other things that should be disclosed, too\u2026 <\/p>\n\n\n\n

Transparency Matters: The Duty to Disclose<\/h2>\n\n\n\n

Are you putting your home on the market? Your real estate agent\nhas to tell you the facts that could impact your sale price, and also must tell\nyou about:  <\/p>\n\n\n\n