What is a breach of fiduciary duty?

A breach of fiduciary duty occurs when a person in a position of trust and confidence, such as an agent, prioritizes their own interests over those of their principal. In a fiduciary relationship, the agent is expected to act in good faith, with loyalty, and in the best interests of the principal. This means the agent must put the client's interests ahead of their own and avoid any conflicts of interest that could harm the principal's position.

In this context, if an agent were to take actions that benefit themselves at the expense of the client, such as steering a client towards a property that yields a higher commission for the agent rather than what is best for the client, this would constitute a breach of fiduciary duty. The essence of fiduciary duty is that the agent must exercise loyalty and act in the best interests of the principal, and any deviation from this standard can lead to a breach.

The other options do not represent a breach of fiduciary duty. Consulting with clients about potential properties is a standard practice that reflects a duty of care. Providing clients with discounts on services is a gesture of goodwill and does not indicate self-serving behavior. Advising clients on company policies is simply part of the agent’s obligation to inform and guide the client within