Picture this: you’re in search of your dream home or contemplating selling your property. In both scenarios, you want a professional who is not only knowledgeable but also committed to acting in your best interests. That’s where fiduciary responsibility comes into play. Fiduciary responsibility is the legal and ethical obligation of a real estate agent to put their clients’ interests above their own.
A real estate agent with fiduciary responsibility will act as your trusted advisor, making decisions and providing guidance that align with your goals and best interests. In New York, real estate agents representing buyers or sellers, have the following fiduciary responsibilities:
Obedience: Fiduciary agents will advise their clients to the best of their ability but, ultimately, they must obey their client’s wishes if it is not illegal or unethical.
Undivided Loyalty: A fiduciary agent is dedicated solely to your interests. They prioritize your needs, objectives, and preferences throughout the buying or selling process.
Full Disclosure: Fiduciary agents provide their clients with any and all information the obtain about properties, market conditions, and any potential conflicts of interest.
Confidentiality : Your agent keeps your personal information confidential and ensures that your negotiations and financial details remain private.
Accountability: Agents and brokers must retain all documents related to a transaction as stipulated by law and cannot comingle transaction funds with any other funds.
Reasonable Care: A fiduciary agent uses their expertise to carry out due diligence, negotiate on your behalf, striving to achieve the best possible terms and outcomes, and shares their knowledge to act in your best interest.
In New York, every licensed Salesperson, Associate Broker, and Broker is required, at the first substantive meeting with you, to present you with a disclosure form that explains how they will represent you in your transaction. That disclosure includes the above fiduciary responsibilities.