What is a Fiduciary in Real Estate?

By: Ben Sage

What is a Fiduciary in Real Estate?

Tags: Real Estate, Woodstock, Ontario, Fiduciary, Client, What is a client

The first thing to discuss, when it comes to being a Fiduciary in real estate sales, is Representation.  Real estate brokers form agency relationships with their clients.  (If you choose to have a real estate broker represent you, you become a client, and the brokerage becomes agent).  Representation creates a fiduciary obligation on behalf of the brokerage.  If you are looking to buy a home, representation is codified by execution of a Buyer Representation Agreement. When you are a seller, and you choose to be represented, this is accomplished using a Listing Agreement. 
 
Here are the duties your agent owes you if you decide to have them represent you for the purchase or sale of a home. 

Competence – your Fiduciary has the skills and experience to perform the task of representing you.
Obedience – Your Fiduciary is obligated to follow any lawful instructions on your behalf.
Loyalty – Your Fiduciary must be loyal to you, as a client
Disclosure – As your Fiduciary, your Agent must disclose all known facts about a property to you
Accounting – Your Fiduciary is responsible for orderly accounting of the process, including paperwork and Trust Account ledger
Confidentiality – As a Client, your Fiduciary owes you full confidentiality, in order to protect your best interests.
 
It is very important to review the contract documents, and ask any questions that may arise!
 
Buyer Representation Agreements can be created to be open to any purchase within a specified time limit and geographic location, or they can be specific to a certain property.  Ask questions! I'm happy to help.