Admittedly, discussions or even a real estate post that revolves around real estate law and a Tyler, Texas real estate agent’s “fiduciary responsibilities” to you the Tyler, TX home buyer or home seller are hardly the topics many would Real Estate Lawget excited about. These responsibilities are typically fresh on the minds of a newly licensed TX agent or maybe a veteran Tyler real estate agent who has just completed his/her continuing education requirements for the Texas Real Estate Commission under the section on “Law of Agency“. I, for one, think it’s extremely important to keep these duties at the forefront of our minds as real estate agents helping clients like you. Frankly, preparing to write this post has renewed my commitment to uphold these duties on your behalf as my Tyler, TX real estate client!

Understanding the Fiduciary Responsibilities Owed to YOU, the Tyler, TX Home Buyer and Home Seller!

Over the next few blog posts, you will come to know what you should expect from your Tyler, TX real estate agent (or any agent who transacts real estate in the state of Texas). These fiduciary duties include:

  • Loyalty
  • Obedience
  • Disclosure
  • Confidentiality
  • Reasonable Care and Diligence
  • Accounting

Loyalty Defined in the Tyler Real Estate Transaction

The noun loyalty is defined in these terms: faithfulness; devotion; constancy

The cornerstone of an agent’s duties to a client is that of loyalty! This fiduciary duty is owed to you, the principal. A principal is a legal term for a client and this duty obligates me as your Tyler, TX real estate agent to act at all times, solely in the best interests of you, my client, excluding all other interests, including that of the broker.

Example of a Breach of Loyalty

You might be interested to know that an example of breach of loyalty is when a real estate agent purchases a Tyler, TX property listed with his/her firm, and immediately resells it at a profit. Some might consider this conduct to be perfectly above board and even lawful by persons who act “at arms length“. Within the realm of a fiduciary “relationship”, it would be considered to a “wrongful act” in which the agent would have stolen an opportunity for profit that rightfully belongs to his/her principal.

Knowing the Duties of Loyalty for a Seller’s Agent and a Buyer’s Agent

  1. As your “seller’s agent”, I must do everything possible to gain an advantage for you, the Tyler, TX home seller. This means securing the absolute highest fair market value for your Tyler property as possible.
  2. If you are represented as a principal buyer, your Tyler, TX real estate agent must do everything possible to gain an advantage for you, the home buyer. Meaning, I will do all that I can to help you buy your property at the lowest price possible.

Your Turn to Ask the Questions?

These real estate terms and laws of agency can be a little confusing. What questions do you have as it relates to the fiduciary duties owned to you as a Tyler, TX home buyer and seller?

Stay tuned to the next post in this series on the fiduciary term “Obedience“.

Steve