Legal Guidance & Duties

Many people do not have a clear understanding of their realtor’s legal “fiduciary obligations” and the protective benefits that go along with them.  In simple terms:  If you are not a Realtor’s client, you are a just a customer. Realtor’s owe a fiduciary duty to their clients, but not to customers.

A simple definition of a fiduciary is someone that by law has to put the client’s well being ahead of their own.

A fiduciary duty is the highest standard of care at either equity or law. A fiduciary is expected to be extremely loyal to the person to whom he owes the duty (the “principal“): he must not put his personal interests before the duty, and must not profit from his position as a fiduciary, unless the principal consents.

Below is a point form list of what clients can expect to benefit

General Obligations

• Exercise Care & Skill
• Negotiate Favourable Terms
• Maintain Confidentiality
• Disclose Information
• Ensure Honesty
• Act in Person
• Obey Instructions
• Perform Mandate

Fiduciary Obligations

• Maintain Utmost Loyalty
• Avoid Conflicts of Interest
• Disclose Conflicts
• Not Make a Secret Profit
• Must Not Misuse Confidential Information

Regulatory Obligations

• To Account & Safeguard Money
• Remuneration Provisions
• Not to Induce, Breach or Make Certain Promises
• Deliver Agreements, Offers & Statements
• Agency Relationships & Forms
• Disclosure: Representative Capacity