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Rainmaker
1,697,510
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

What are the duties of a Fiduciaryto a Principal/Client?

 

What is a Fiduciary?
A Fiduciary is an agent for a Principal/Client. The legal or special relationship of trust, confidence, or responsibility between two or more parties, most commonly a "Fiduciary" and a "Principal/Client", is called the Fiduciary Duty.Between an Exclusive Buyer Agent and Buyer-Client, the fiduciary duty is established via written authorization in the form of an Exclusive Buyer Agency Agreement that may or may not include consideration in the form of a retainer. For years it's been customary for Sellers of real estate on Martha's Vineyard to sign an Exclusive Listing Agency Agreement with Martha's Vineyard real estate seller agents. Therefore, the Seller had representation, but the Buyer did not. So what's the difference between being a Customer/non-Client and a Principal/Client? Statutory common laws and regulations define certain duties that are owed to both; however, fiduciary duties to a Principal/Client require greater responsibility.

 

The basic duties that are owed to any real estate buyer whether they are a Customer/non-Client or a Principal/Client are as follows:

 

Honesty:
No statement or action can result in fraud or misrepresentation. All laws and regulations pertaining to the transaction must be obeyed, including the disclosure of material facts.

 

Agency Disclosure and Material Facts Disclosure:
Disclosure of agency relationships, including an explanation of the difference between a customer and principal/client relationship, must be made in a timely fashion so that customers can protect their own interests. (e.g. reveal any confidential information). Material facts about properties must also be disclosed.

 

Accounting:
The agent is required to report to the principal promptly all money and property received and paid out, and upon request, to tender an account of these actions. This duty also requires the agent to safeguard money or property held on behalf of the principal. 



In addition to Honesty, Agency Disclosure and Material Fact Disclosure and Accounting, a Principal/Client is also owed the following Fiduciary Duties:

 

Undivided loyalty:
The agent is prohibited from advancing any interests adverse to the principal's interest or conducting the principal's business in such a way as to benefit a customer, a subagent, the agent or any other party to the detriment of the principal's interest.

 

Obedience:
The agent is required to act, following and abiding all lawful instructions, subject to the principal's continuous control, but not exceeding the scope of the authority conferred by the principal. That is, do not make decisions for the principal.

 

Reasonable care and diligence:
The agent is required to protect the principal from foreseeable risks of harm, recommending that the principal obtain expert advice or assistance when the principal's needs are outside the scope of the agent's expertise.

 

Confidentiality:
The agent is prohibited from communicating personal information about the principal that was given to or acquired by the agent within the scope of employment as an agent to the principal. Personal information must be kept confidential unless the client releases the agent, or subagent, from this duty. However, the material facts and defects of a property are NOT confidential.

 

Full Disclosure:
The agent is required to disclose affirmatively all information concerning the transaction (and property) which might affect the decisions a principal makes, informing the principal what the agent knows.

 

Accounting:
The agent is required to report to the principal promptly all money and property received and paid out, and upon request, to tender an account of these actions. This duty also requires the agent to safeguard money or property held on behalf of the principal.

Jan 16, 2018 08:36 AM
Rainmaker
1,231,318
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

BINGO,  Anthony Acosta - ALLATLANTACONDOS.COM 

Jan 16, 2018 06:29 PM
Rainmaker
4,116,302
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Thank you Anthony!! Great answer..all are equally important..learn them and following them and you'll be successful!!

Jan 16, 2018 04:29 PM
Rainmaker
3,830,820
Richard Weeks
Dallas, TX
REALTOR®, Broker

OLD CAR

Obedience

Loyalty

Disclosure

Confidentiality

Account 

Reasonable Care

Jan 16, 2018 11:07 AM
Rainmaker
1,649,749
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Anthony Acosta - ALLATLANTACONDOS.COM .  Thank you for doing the homework for Anonymous.

Jan 16, 2018 09:07 AM
Rainmaker
3,971,557
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

If your instructor can't tell you and it is not in your text book, you need a different school with all due respect!

Jan 16, 2018 08:11 PM
Rainmaker
512,333
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Seems you got the answer!

Jan 16, 2018 02:27 PM
Rainmaker
3,296,624
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Many great responses.

Jan 16, 2018 12:34 PM
Rainmaker
1,440,627
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Anthony Acosta - ALLATLANTACONDOS.COM did a good job of expanding on the Fiduciary Duties. Before you ask, they are all equally important.

Jan 16, 2018 11:05 AM
Rainmaker
6,308,788
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

It is time for you to do some studying.

Jan 16, 2018 10:53 AM
Rainmaker
1,104,546
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

Anthony Acosta - ALLATLANTACONDOS.COM summed it up very well.

My description is putting your clients needs and position ahead of everyone else's including your own.

Jan 16, 2018 10:49 AM
Ambassador
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Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

 ?

Jan 16, 2018 09:12 AM
Rainmaker
1,707,197
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

The ones listed in Chapter 3.

Jan 16, 2018 08:08 AM
Rainer
4,380
Todd Phillips
AZHouseAZHome - Realty Executives - Phoenix, AZ
Buyer/SellerRep,CashOffers,Wholesale,Photography

BIG BIG BIG WORD

Jan 16, 2018 08:02 AM
Ambassador
4,040,963
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

I'd say you got the best answer ever to this question by Anthony Acosta - ALLATLANTACONDOS.COM

Jan 16, 2018 08:31 PM
Ambassador
4,312,167
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Anthony Acosta - ALLATLANTACONDOS.COM nailed it!

Jan 16, 2018 07:23 PM
Rainmaker
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Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Is this Jeopardy ???

Jan 16, 2018 11:15 AM
Ambassador
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Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

I think that Anthony explained it well.

Jan 16, 2018 10:50 AM
Rainmaker
563,279
Maria Sapio
Keller Williams of Central PA - Carlisle, PA
Real Estate Agent- Carlisle, PA. Mariasapio.com

Thank you Anthony Acosta - ALLATLANTACONDOS.COM 

Jan 16, 2018 09:35 AM
Rainmaker
5,570,348
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

you got a few answers here.... frustration has set in!

Jan 16, 2018 08:09 AM
Rainmaker
3,069,584
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Anthony Acosta - ALLATLANTACONDOS.COM nailed this one!

Jan 17, 2018 06:17 AM
Ambassador
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Anthony Acosta - ALLATLANTACONDOS.COM - you pass with flying colors!!!!

Jan 16, 2018 08:43 PM
Rainmaker
1,132,095
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

avatar's duties are getting someone help them to pass a test.

Jan 16, 2018 08:05 AM
Rainmaker
2,061,599
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

Great answers are here.

Oct 07, 2018 01:55 PM
Rainmaker
1,596,146
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

Great answers are here. 

Good luck

Oct 07, 2018 01:53 PM
Rainmaker
3,985,765
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Anthony has it and if your instructor hasn't told you this yet you need a new one

Jan 17, 2018 08:31 PM
Rainmaker
1,355,908
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Jan 17, 2018 05:16 PM
Rainmaker
4,433,483
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Many.

Jan 17, 2018 08:49 AM
Rainmaker
4,799,256
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

They should be written in your textbook.

Jan 17, 2018 05:18 AM
Rainmaker
3,852,679
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I think you need to go back to your text book for that information. Or is this a quiz you are giving us?

Jan 17, 2018 04:36 AM
Rainmaker
1,508,951
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

Good luck...

Jan 16, 2018 11:26 PM
Ambassador
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Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I know but the question is do you? It should be in you prelicense materials and you will be tested on it.

Jan 16, 2018 02:54 PM
Rainmaker
2,604,216
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

To look after another interests above all at all times without exceptions

Jan 16, 2018 11:03 AM