What does duty of loyalty entail in a real estate transaction?

In a real estate transaction, the duty of loyalty is primarily about prioritizing the client's best interests above all others. This fiduciary duty means that as an agent or representative, the professional must act in ways that are solely beneficial to their client, even if it may not yield the highest personal benefit for themselves or even if it conflicts with the interests of other parties involved in the transaction.

This principle fosters trust in the client-agent relationship, ensuring that the agent is fully committed to advocating for the client's needs and desires. Such loyalty includes providing accurate advice, negotiating effectively on behalf of the client, and avoiding any actions that would place the agent's interests ahead of those they represent.

While offering confidentiality is also an important aspect of the fiduciary duty, it complements loyalty rather than defines it. Similarly, being fair to all parties involved lacks the centrality to the agent's obligation to their specific client. Ensuring that every transaction is profitable can be a goal, but it doesn't capture the essence of loyalty, which is about the dedication to the client's best outcomes, regardless of the profit margins.