Which agency provides a buyer with a fiduciary duty in a real estate transaction?

In a real estate transaction, the buyer's agent is the party that provides fiduciary duty to the buyer. A fiduciary duty encompasses a range of responsibilities and obligations that the agent has to their client, including loyalty, confidentiality, and full disclosure. This means that the buyer's agent is required to act in the best interests of the buyer throughout the negotiation and closing process, prioritizing the buyer’s needs and goals.

This agency relationship is established through a buyer representation agreement, which formalizes the commitment of the agent to advocate for the buyer's best interests. The fiduciary duty includes providing honest advice, negotiating the best terms, and protecting the buyer’s confidential information.

Other roles in the transaction, such as the seller's agent, listing broker, or transaction coordinator, do not have the same responsibility towards the buyer. The seller's agent represents the seller's interests and is obligated to negotiate in favor of the seller, while the listing broker typically oversees the seller's agent's activities. A transaction coordinator primarily manages the administrative aspects of a transaction and does not hold fiduciary duties to either party.