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Complete glossary lessonNational exam concept

Fiduciary duty

Fiduciary duty is the heightened obligation of loyalty, obedience within lawful authority, disclosure, confidentiality, accounting, and reasonable care that an agent owes the principal, as shaped by statute and agreement.

Official area

Agency

Knowledge cluster

Agency foundations

Learning sequence

Define, distinguish, apply, retrieve

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Exam purpose

Recognize the rule, then reject the nearest look-alike.

Georgia lens

Apply the state distinction only when the facts call for it.

Connected terms

Connected to 4 terms and one official content area.

What does Fiduciary duty mean in real estate?

Fiduciary duty is the heightened obligation of loyalty, obedience within lawful authority, disclosure, confidentiality, accounting, and reasonable care that an agent owes the principal, as shaped by statute and agreement.

How is Fiduciary duty different from the closest exam answer?

Fiduciary duties are owed to a client or principal. A customer is still owed honesty and specified disclosures but not the same advocacy and loyalty.

What is the Georgia-specific rule?

BRRETA states the duties Georgia brokers owe in seller and buyer engagements and protects specified confidential information even after the engagement ends.

Worked exam example

Scenario

A buyer's agent keeps the buyer's maximum price confidential while diligently presenting the buyer's authorized offer.

Decision rule

Fiduciary duties are owed to a client or principal. A customer is still owed honesty and specified disclosures but not the same advocacy and loyalty.

What is the most common exam trap?

Trap correction

Obedience never requires following an illegal instruction, and disclosure to a client does not authorize revealing another client's confidence.

Memory cue: Obedience never requires following an illegal instruction, and disclosure to a client does not authorize revealing another client's confidence.

Original exam check

Apply the definition

Which statement correctly explains Fiduciary duty?

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Related terms to learn next

Agency

Agency is a legal relationship in which an agent is authorized to act for a principal and owes duties arising from the relationship, the agreement, and applicable law.

Client

A client is a person who enters a brokerage engagement with a broker.

Customer

A customer is a party in a real estate transaction whom a broker does not represent but may assist through ministerial acts.

Dual agency

Dual agency occurs when one broker represents both buyer and seller in the same transaction.

Recommended next complete lesson

Continue with Agency complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.
Previous termAgencyNext term Listing agreement

Fiduciary duty quick answers

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Editorial standards.

What is Fiduciary duty?

Fiduciary duty is the heightened obligation of loyalty, obedience within lawful authority, disclosure, confidentiality, accounting, and reasonable care that an agent owes the principal, as shaped by statute and agreement.

What is Fiduciary duty commonly confused with?

Fiduciary duties are owed to a client or principal. A customer is still owed honesty and specified disclosures but not the same advocacy and loyalty.

How does Georgia treat Fiduciary duty?

BRRETA states the duties Georgia brokers owe in seller and buyer engagements and protects specified confidential information even after the engagement ends.