Glossary

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Fiduciary Duty
This is a legal obligation that certain individuals, acting on behalf of another, have to act in a financially responsible manner that is in the best interest of the person they are representing. A real estate agent has a fiduciary duty to both a seller and a buyer to properly handle the sale of a home. They have the duty of accurately representing the features of a home for a seller and also preparing the sales contract and any other documents required to present an offer to a potential buyer. They also have the obligation to communicate the offer and allow the seller the opportunity to accept or decline that offer. Because real estate sales involve substantial amounts of money, it is important that an agent can be trusted to exercise his or her fiduciary duties. Knowing that everything is above-board gives confidence to both the buyer and the seller.