What is a breach of fiduciary duty in real estate?

A breach of fiduciary duty in real estate occurs when an agent fails to act in the best interests of their client. In the real estate context, fiduciary duty involves the obligation the agent has to put the client's interests ahead of their own and to act with loyalty, honesty, and a high standard of care. This means that the agent must always prioritize the client's needs and objectives, providing full disclosure and avoiding conflicts of interest.

When an agent neglects this duty and does not advocate for the client's best interests, it undermines the trust inherent in the client-agent relationship and can lead to financial harm or disadvantage for the client. This breach can manifest in various ways, including poor advice, neglecting client instructions, or prioritizing personal gain over the client's needs.

While withholding important information, charging excessive fees, and providing misleading property valuations can all be unethical or improper actions, they may not necessarily represent a direct breach of fiduciary duty in the same way that failing to act in the best interest of the client does, as they may not always involve the ethical obligation to prioritize the client's interests above all else. However, such actions can also lead to legal repercussions depending on the circumstances and the laws governing real estate practices.