What is included in the fiduciary duties owed by a real estate licensee?

The fiduciary duties owed by a real estate licensee include care and obedience, which are essential components of the trust relationship established between the agent and the client. The duty of care requires the licensee to act with competency and diligence, ensuring that they provide informed advice and protect the client’s interests diligently. This means making informed decisions, conducting thorough research, and acting in the client's best interests in all transactions.

The duty of obedience requires the agent to act according to the lawful instructions of the client, following their wishes as long as they comply with the law. This responsibility fosters trust and fulfills the agreement made between the client and the licensee, reinforcing the foundation of the fiduciary relationship.

In contrast, while profit sharing, employing sub-agents, and advertising properties may be involved in real estate practices, they do not constitute the core fiduciary duties. These actions can be important in a real estate transaction but do not encompass the ethical responsibilities that guide the agent's behavior toward their client. Focusing on care and obedience emphasizes the ethical and legal obligations that are fundamental in a fiduciary relationship.