Realtors have to abide by certain fiduciary laws, which are designed to protect the interest of the client which involves the trust and confidence of the fiduciary to represent the said client’s best interest.
Real Estate Agent
A real estate agent owes the highest duty of good faith, honesty, and fair dealing to their client. A real estate broker who becomes an agent of a seller or buyer is deemed to be fiduciary. As a fiduciary, a real estate agent is held by law to owe specific duties to their client as well as to obligations set forth in a listing agreement, buyer representation agreement, or other contractual agreements made with their client. Sub-agents of the real estate broker also owe the same fiduciary duties to the broker’s client as well as honesty, good faith, and fair dealing.
When a real estate agent is acting in an agency capacity for a buyer or seller in a transaction they have certain legally mandated duties that are called fiduciary duties. O.L.D. C.A.R. is an acronym for the fiduciary duties required of a real estate agent. O for obedience, L for loyalty, D for disclosure, C for confidentiality, A for accounting, and R for reasonable care. These fiduciary obligations are an agent’s specific duties to their client.
An agent is obligated to obey all lawful instructions of their client. This specific duty falls under Obedience. Loyalty is one the fundamental duties an agent owes to their client. This duty obligates a real estate agent to act at all times solely in the best interest of their client. In the duty of Disclosure an agent must disclose to their client all relevant information that pertains to the property. This would include any information that affects the value of the property as well as any information that pertains to the transaction of the said property. In the duty of Confidentiality an agent is obligated to safeguard their client’s lawful confidential information such as a seller willing to sell a property below the listed price. An agent who represents a buyer is prohibited by law from disclosing to a seller that the buyer is willing to pay more for the property. In Accounting an agent must be able to account for all money and property that belongs to their client that has been entrusted to that agent. Finally there is Reasonable Care, an agent is obligated to use reasonable care and diligence when working with their client using their superior skill and knowledge of real estate.
Connect with Catherine:
As The Intentional Realtor, my goal is to help you achieve the reality of homeownership. I’ll do my best to make sure that you receive the best representation possible when it comes to buying a home and that you understand all the duties of your fiduciary, which is why securing a good Realtor is in your best interest to help you find the home of your dreams.
For this and more real estate needs by The Intentional Realtor, connect with me, Catherine Mitchell, at (704) 898-0605 http://www.catherinemitchellrealty.com/