What is the definition of a fiduciary in real estate?

A fiduciary in real estate refers to a relationship of trust and confidence between two parties, typically involving an agent or broker who acts on behalf of a principal. The fiduciary is obligated to act in the best interest of the principal, managing their affairs, funds, and other interests with loyalty and care. Thus, the correct answer underscores the role of an agent or broker in handling funds, as this is a key aspect of the fiduciary relationship.

In this context, the agent not only facilitates transactions but also ensures that they manage the client's funds responsibly, maintain confidentiality, and provide full disclosure of relevant information. This legal and ethical responsibility goes beyond simply conducting transactions; it requires a commitment to the fiduciary standard, which demands the utmost good faith and loyalty.

The incorrect options don’t encompass the complete essence of a fiduciary. An independent contractor, while having a working relationship with a broker or client, does not imply the trust and responsibility inherent in a fiduciary relationship. A property manager has fiduciary duties but is too narrow a definition, as it excludes other agent roles. Lastly, defining a fiduciary as a buyer's agent only limits the concept to a specific type of representation, ignoring that fiduciary duties apply to various real estate roles