Who is considered a fiduciary in a real estate transaction?

In a real estate transaction, a fiduciary is typically someone who has a legal and ethical obligation to act in the best interests of another party. This relationship is based on trust and confidence, and the fiduciary must prioritize the interests of their client above their own.

The broker employed under a listing contract is considered a fiduciary because they have a formal agreement with the seller that obligates them to provide representation and support throughout the transaction. This includes duties such as loyalty, disclosure, confidentiality, and full accounting, which all aim to protect the interests of the client.

The other options do not fulfill the criteria for fiduciary status. The buyer's agent acting without a contract lacks the formal agreement that would establish a fiduciary relationship, meaning they are not legally bound to prioritize the buyer's interests. A seller's relative, while they may provide assistance or support, does not typically have a fiduciary duty unless they are also licensed or contracted in a professional capacity. A property inspector provides a service and is not in a position of trust regarding the representation of the buyer or seller in the transaction. Thus, the broker under the listing contract is the clear choice for who qualifies as a fiduciary in this context.