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AN AGENT'S FIDUCIARY DUTIES TO THEIR CLIENT

Loyalty 

A duty of loyalty is one of the most fundamental fiduciary duties owed by an agent to his principal. This duty obligates a real estate broker to act at all times solely in the best interests of his principal to the exclusion of all other interests, including the broker’s own self-interest. A corollary of this duty of loyalty is a duty to avoid steadfastly any conflicts of interest that might compromise or dilute the broker’s undivided loyalty to his principal’s interests. Thus, a real estate broker’s duty of loyalty prohibits him from accepting employment from any person whose interests compete with, or are adverse to, his principal’s interests.

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Confidentiality

An agent is obligated to safeguard his principal’s confidence and secrets. A real estate broker, therefore, must keep confidential any information that might weaken his principal’s bargaining position if it were revealed. This duty of confidentiality precludes a broker representing a seller from disclosing to a buyer that the seller can, or must, sell his property below the listed price. Conversely, a broker representing a buyer is prohibited from disclosing to a seller that the buyer can, or will, pay more for a property than has been offered.

An agent is obligated to obey promptly and efficiently all lawful instructions of his principal. However, this
duty plainly does not include an obligation to obey any unlawful instructions; for example, an instruction not to market the property to minorities or to misrepresent the condition of the property. Compliance with instructions the agent knows to be unlawful could constitute a breach of an agent’s duty of loyalty.

Obedience

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Disclosure

An agent is obligated to disclose to his principal all relevant and material information that the agent knows and that pertains to the scope of the agency. The duty of disclosure obligates a real estate broker representing a seller to reveal to the seller:

  • All offers to purchase the seller’s property.

  • The identity of all potential purchasers.

  • Any facts affecting the value of the property.

  • Information concerning the ability or willingness of the buyer to complete the sale or to offer a higher price.

  • The broker’s relationship to, or interest in, a prospective buyer.

  • A buyer’s intention to subdivide or resell the property for a profit.

  • Any other information that might affect the seller’s ability to obtain the highest price and best terms in the sale of his property

 

A real estate broker representing a buyer is obligated to reveal to the buyer:

  • The willingness of the seller to accept a lower price.

  • Any facts relating to the urgency of the seller’s need to dispose of the property.

  • The broker’s relationship to, or interest in, the seller of the property for sale.

  • Any facts affecting the value of the property.

  • The length of time the property has been on the market and any other offers or counteroffers that have been made relating to the property.

  • Any other information that would affect the buyer’s ability to obtain the property at the lowest price and on the most favorable terms.

Mike Schneider, REALTOR®
License# 403055

(404) 952-5020

mike@gahomematch.com

9860 Hwy 92

Woodstock, GA 30188

License# H-61807

(770) 240-2005

AtlantaCommunities.net

#GETMATCHED

#WESELLGAHOMES

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