What does "fiduciary duty" mean in real estate?

Fiduciary duty in real estate refers to the obligation that one party has to act in the best interests of another party in a transaction. This relationship is built on trust and confidence, where the fiduciary (often a real estate agent or broker) is required to prioritize the client's needs, provide full disclosure, and maintain loyalty and confidentiality. This principle is foundational in ensuring that clients receive the best possible advice and representation regarding their real estate interests.

In this context, maximization of one's own profits, property disclosures, and maintaining property value do not encapsulate the essence of fiduciary duty. Those responsibilities may be important in real estate transactions, but they do not reflect the central principle of acting in someone else's best interest, which is pivotal to maintaining ethical and professional standards in the industry.