Tuesday, May 27, 2008

Real Estate Agency Law - Fiduciary Duties

Fiduciary Duties of an Agent

Obedience: As an agent of your client, you must obey their instructions. That's only if their instructions are not illegal and are in accordance with the contract.

Loyalty: As the agent for your client, you must be loyal and keep their best interests ahead of those of any other party, including yourself.

Disclosure: In many states the law requires a real estate agent, whether in an "agency" capacity or not, to disclose material facts to their client. Material facts are those that, if known by the buyer or seller, might have caused them to change their purchase or sale actions.

Confidentiality: Your fiduciary duty of confidentiality means that you do not disclose anything that you learn about your client, their business, financial or personal affairs or motivations.

Accounting: Accounting for all documents and funds in the transaction is a fiduciary duty. Accurate reporting of the whereabouts of all monies pertaining to the transaction and their ultimate disposition is a fiduciary responsibility.

Reasonable Care: This duty is one to be very careful of. The words "reasonable care" are only finally fully defined in many cases by a judge or jury when it's too late to change your actions. You, as a licensed real estate professional, are expected to have a certain level of knowledge and be able to advise and guide your client through the process without harm.

Diligence: Know Your Fiduciary Duties as an Agent and Perform them Diligently.

For More Information on Agent's responsibilities, please contact your Lake Norman area agent at (704)-315-8106.

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