Real Estate Glossary

What's a Fiduciary Duty ?

Fiduciary duty refers to the legal and ethical obligation of one party (the fiduciary) to act in the best interests of another party (the beneficiary). A fiduciary duty is generally imposed when one party places trust and confidence in another party, such as in the relationship between a trustee and a beneficiary, or between an agent and a principal. Fiduciary duty can be a legal or moral duty, requiring the person fulfilling it to act with the highest standards of trust, integrity, and loyalty.

Examples of fiduciary duties include acting honestly, disclosing all relevant information, and not acting in one's own self-interest rather than that of the beneficiary. A violation of fiduciary duty can result in legal action, and it is taken very seriously in professional settings such as those of financial advisors, real estate agents, and attorneys.