A fiduciary is someone who holds an ethical or legal relationship of trust, and is formed between different parties that trust themselves. This trust usually has to do with property, assets, or money.
NAR (National Association of Realtors) specifies that fiduciary duties enclose six areas; Obedience, Confidentiality, Diligence, Disclosure, Accounting, and Loyalty. The provision does not only relate to keeping your money safe but your documents and related deeds too.
The Relationship In Real Estate
A fiduciary bond is formed in FazWaz UAE between a buyer or seller, known as the principal, and the agent, who is the fiduciary.
The agent of a seller could be put into a fiduciary alliance with the seller through a listing agreement, combined with an agency declarations in certain areas. A seller’s agent should not disclose any private information about the seller or tell a buyer whether the seller will accept a lesser amount, without the permission of the seller.
The agent of a buyer works in the interest of the buyer and must hold the buyer’s interest above the benefit of the seller. This trust requires a loyal treatment to the buyer and the highest standard of care too.
The agent of a buyer might reveal something to the seller relating to a proposal between him and his client. Due to some reasons, the buyer does not really agree that it should be as he said, but the agent keeps insisting that it must be done. This might lead to a serious misunderstanding from a buyer to his agent.
In this situation, a buyer is most likely to be furious and might attempt to fire the agent right away, because here, the agent revealed a piece of information about what they discussed to the seller, which might put him at a losing position.