What Is a Fiduciary Duty in Real Estate?

What Is a Fiduciary Duty in Real Estate?
A fiduciary duty is a legal and ethical obligation to act in the best interest of another party—in this case, you, the client. When you sign a listing agreement or a buyer representation agreement in South Carolina, your agent becomes your fiduciary. That means they’re not just helping you with a transaction—they are legally bound to put your interests above their own.

In South Carolina, licensed real estate agents must follow a specific set of fiduciary duties when representing a client. These are not optional. These are core principles that guide how we work, how we communicate, and how we protect your investment.

The Six Fiduciary Duties Every Agent Owes You
1. Care
Your agent must use skill, experience, and attention to detail to serve you effectively. Whether you're pricing your home, reviewing multiple offers, or choosing between properties near the lake, your agent must guide you with care and expertise. If your agent doesn’t know something, they should find out—or connect you with someone who does.

2. Loyalty
Loyalty means your agent must always put your best interests first. Not the buyer’s. Not their own. Not a builder’s. If an agent represents you, everything they do must be with your goals in mind—even when it may not be the easiest or most profitable path for them personally.

3. Good Faith and Obedience
Your agent is required to follow your lawful instructions, act honestly, and maintain your trust. For example, if you tell your agent not to disclose that you’re in a hurry to sell, that preference must be honored. Good faith means honesty, as well as transparency about what's happening in the transaction.

4. Confidentiality
What you share with your agent stays with your agent—even after the transaction ends. If you tell your agent you’re getting divorced, you've lost your job, or you can only afford a certain price, they cannot disclose that information to anyone unless you give them permission.

5. Reasonable Care and Diligence
Real estate transactions can be complex. Your agent must protect your interests by ensuring that contracts are accurate, deadlines are met, and all aspects of the deal are handled with professionalism. This includes conducting due diligence on issues such as easements, well tests, septic permits, and zoning changes, which are widespread concerns in rural and lakefront properties.

6. Full Disclosure
An agent must tell you everything they know that could influence your decision. This includes information about a property’s condition, pending developments in the area, or even details about the other party’s situation if they legally can. Full disclosure builds trust, and it helps you make better decisions.

Why These Duties Matter in South Carolina’s Lake and Mountain Communities
In rural areas like Oconee County, buyers and sellers often rely on their agent for more than just paperwork. You might need help navigating private road maintenance agreements, understanding lake access rights, confirming survey lines, or verifying access to utilities.

This is where fiduciary duties really matter.

You deserve to know that your agent is protecting your financial interests and not just pushing a deal through. You should feel confident that the advice you’re getting is based on your needs, not just their commission. When agents truly honor their fiduciary duties, trust is built, and transactions are smoother.

How to Know Your Agent Is Acting as a Fiduciary
Here are a few signs you’re working with an agent who takes their fiduciary role seriously:

They explain your options clearly, even when it means advising patience instead of urgency.
They disclose everything they know, even if it might cause you to back out of a deal.
They don’t push you toward homes that are wrong for you, just to close a sale.
They protect your private information.
They ask questions and listen carefully, not just talk numbers.

The Bottom Line: Trust Matters
Buying or selling property—especially in a beautiful but nuanced market like ours—is not just a transaction. It’s a life decision. You deserve an agent who treats it that way.

Fiduciary duties are more than rules on paper—they are the promises that make real estate relationships trustworthy, respectful, and successful.

If you’re looking for an agent who takes these responsibilities seriously, who understands our unique mountain and lake communities, and who will walk beside you every step of the way, I’d love to talk with you.

Let’s make your next move one you feel confident in.

Print This Post Email This Post

Share on Social Media: