To whom does a broker owe the fiduciary duty of care?

A broker owes the fiduciary duty of care primarily to the party or parties employing the broker. This relationship is established when a client engages the broker's services, which creates obligations designed to protect the client's interests.

The duties included in this fiduciary relationship encompass loyalty, confidentiality, disclosure, and the utmost care in handling the client’s affairs. The broker must act with a degree of care and diligence that is expected in the business, protecting the client's investment and ensuring that all transactions are handled with skill and professionalism.

In this context, the broker's responsibility is to operate in the best interests of their client, ensuring that they provide accurate information, advocate effectively on their behalf, and remain trustworthy throughout the real estate transaction process. The focus on the client underscores the fiduciary relationship, distinguishing it from obligations to competitors, the general public, or local boards, which do not create the same legal and ethical expectations.