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AgencySubject 2 of 19

Fiduciary

A fiduciary is a person who owes duties of trust, loyalty and care to another person within the scope of their relationship.

Direct answer

What does fiduciary mean?

A fiduciary is a person who owes duties of trust, loyalty and care to another person within the scope of their relationship.

Exam cue: For New York agency questions, connect loyalty, confidentiality, disclosure, obedience, reasonable care and accounting to the client.

What does it look like in a question?

Example

A buyer's agent protects the buyer's confidential negotiating position while following lawful instructions.

Common exam trap

What should you not confuse it with?

A fiduciary duty to a client does not permit dishonesty or concealment of a material fact from others.

AccountingAccounting is the fiduciary duty to safeguard and properly account for money, documents and property entrusted to the agent.AgencyAgency is a relationship in which an agent is authorized to act for a principal and owes duties within that relationship.Broker's agentA broker's agent is an agent from another firm engaged by a listing, buyer's or tenant's agent to help serve that agent's principal, with no direct relationship to the principal.ClientA client is a principal who is represented by a real estate agent.CustomerA customer is a person who receives services from a licensee but is not represented by that licensee as an agent.Designated sales agentA designated sales agent is a salesperson or associate broker assigned by the broker to represent one client when the same broker also represents another client in the deal.

Sources used3 references with section locators

The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself.

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