What type of relationship does a fiduciary duty create between a real estate agent and their client?

A fiduciary duty establishes a professional agency relationship between a real estate agent and their client. This relationship is characterized by a high level of trust and reliance on the agent to act in the best interest of the client. The agent is required to prioritize the client's interests above their own and maintain a duty of loyalty, confidentiality, and full disclosure.

In the context of real estate, this means that the agent must provide competent advice, advocate for the client's position in negotiations, and disclose any conflicts of interest. The fiduciary relationship empowers the agent to make decisions and take actions that will best serve the client’s needs, reinforcing the importance of ethical conduct and responsibility in real estate transactions.

The other types of relationships listed do not encapsulate the same level of responsibility and trust inherent in a fiduciary duty. A transactional relationship is typically more limited, focusing on a specific transaction rather than an ongoing, trust-based relationship. Limited partnership and equal partnership relationships imply different forms of collaboration or shared ownership rather than the specific responsibilities that define a fiduciary relationship in the real estate context.