Tuesday, August 7, 2007

Fiduciary Duties

Realtors in Minnesota have fiduciary duties to clients. Kind of like attorney-client privilege or the secrets that your doctor keeps about those bumps you have.

I actually enjoy this aspect of my job a lot. The client really has a lot of control of the agent, because it is the client that needs to make the decisions, not the agent. The agent should advise, and educate, but not make the decision.

Here are the fiduciary duties every agent in the State of Minnesota owes clients, from the Agendy Disclosure Form:
Loyalty - broker/salesperson will act only in client(s)’ best interest.
Obedience - broker/salesperson will carry out all client(s)’ lawful instructions.
Disclosure - broker/salesperson will disclose to client(s) all material facts of which broker/salesperson has knowledge which might reasonably affect the client(s)’ use and enjoyment of the property.
Confidentiality - broker/salesperson will keep client(s)’ confidences unless required by law to disclose specific information (such as disclosure of material facts to Buyers).
Reasonable Care - broker/salesperson will use reasonable care in performing duties as an agent.
Accounting - broker/salesperson will account to client(s) for all client(s)’ money and property received as agent.


Every agent has a time when one of these factors is tested. There are times when loyalties get split, when proper disclosure becomes difficult, when you just accidentally screw up and you didn't show reasonable care. I hope never to have a problem with the accounting requirement. I am very cautious with my clients' earnest checks and property.

I could write all day on this topic. More to come.

1 comment:

Anonymous said...

People should read this.