What type of relationship is built on trust and requires loyalty in real estate transactions?

In real estate transactions, a fiduciary relationship is established between the agent and the client. This type of relationship is fundamentally characterized by trust, loyalty, and a commitment to act in the best interests of the client. When an agent is appointed to represent a client, they assume a legal and ethical responsibility to prioritize the client's needs above their own.

The fiduciary relationship encompasses several key duties, including confidentiality, obedience, full disclosure, accountability, and reasonable care. These duties are essential in creating a secure environment where the client feels confident that their agent will navigate the complexities of real estate transactions with their best interests at heart.

In contrast to other types of relationships, such as a business relationship or transactional relationship, which may not impose the same significant obligations of loyalty and trust, the fiduciary relationship emphasizes a deeper commitment to protect and advance the client's interests throughout the course of the transaction. Thus, it is this foundational aspect of trust and loyalty that distinguishes the fiduciary relationship in real estate.