What does the fiduciary duty of loyalty require from a broker?

The fiduciary duty of loyalty is a fundamental principle that requires a broker to prioritize the interests of their client above all else. This means that the broker must act in a manner that is solely in the best interest of the client, avoiding any conflicts of interest and ensuring that the client's needs and goals are at the forefront of every decision made during the transaction process.

In practical terms, this obligation can manifest in various ways, such as advocating for the best possible terms for the client in negotiations, advising on matters that will benefit the client, and withholding information that may be detrimental to the client's position. The broker's loyalty must be unwavering, ensuring that their actions and advice support the client's objectives without any self-serving motives.

While full disclosure of relevant information, maintenance of financial records, and timely communication about all offers are important aspects of a broker's responsibilities, they are part of the broader duties that support the overarching fiduciary duty of loyalty. However, the essence of loyalty specifically calls for the broker to act exclusively in the best interest of their client.