What responsibility does a real estate agent have in an agency relationship?

In an agency relationship, a real estate agent has a fiduciary duty to their principal, which means the agent must act with loyalty to the principal's interests above their own. This principle of loyalty is foundational in establishing a trust-based relationship, ensuring that the agent prioritizes the principal's objectives, whether that be selling a property, buying a property, or providing other real estate services.

The agent must also disclose any information that could affect the principal’s decisions and refrain from actions that could benefit themselves at the principal's expense. This commitment to loyalty underlines the ethical and legal obligations necessary for fostering a successful agency relationship, helping to maintain the trust that is essential to real estate transactions.

Other responsibilities of a real estate agent, such as managing property inspections or handling financial arrangements, may also be part of their role, but these are not foundational duties of loyalty in the same way. The focus of the agent's obligation remains rooted in serving the principal's best interests—making loyalty the most crucial aspect of their responsibilities.