Brenda owes fiduciary duties to Tina in a real estate transaction.

Trust is the real currency in a real estate deal. Without it, even the best negotiated price can feel shaky. That’s why the moment we talk about Brenda and Tina, the spotlight lands on fiduciary duties—the legal and ethical obligations Brenda owes Tina as her client. In Brenda’s role as Tina’s agent, the correct framework isn’t just about good vibes; it’s about a structured promise to put Tina’s interests first. Let me explain how this works in everyday real estate, and why it matters whether you’re buying, selling, or representing someone in between.

What are fiduciary duties, anyway?

When we say fiduciary duties, think of them as a formal trust agreement baked into the agent-client relationship. In a real estate transaction, Brenda must act in Tina’s best interests, even when it’s not the easiest or most convenient route for Brenda. That’s the core idea.

Fiduciary duties cover a bundle of obligations. Here are the six main ones you’ll hear about most often:

• Loyalty: Brenda should put Tina’s interests ahead of her own. If there’s a conflict of interest, Brenda must handle it transparently and in Tina’s favor.

• Full disclosure: If Brenda knows information that could affect Tina’s decisions—like a latent issue with a property, or a better financial offer from Tina’s perspective—she should share it.

• Confidentiality: Brenda must keep Tina’s private information private. If Tina shares her price ceiling, motivation to move quickly, or other strategies, Brenda should not disclose that to others unless Tina says it’s okay or it’s legally required.

• Obedience to lawful instructions: Brenda should follow Tina’s lawful instructions, within the bounds of applicable laws and ethical standards.

• Accountability: Brenda must be answerable for her actions. Records, documents, and communications should be accurate and traceable.

• Reasonable care and diligence: Brenda should employ the knowledge, skills, and expertise expected of a competent professional. She should verify facts, explain options clearly, and negotiate with care.

That’s a lot to carry—but it’s also what protects Tina, the client, in a market where big decisions and big sums are at stake.

Why fiduciary duties matter in real estate

Real estate isn’t just a purchase or a sale; it’s often a life milestone. The price tag, the financing, the inspection findings, and the timing can all ripple through a family budget and a future. Fiduciary duties exist precisely to keep things fair, transparent, and legally sound.

• They build confidence: Tina can trust that Brenda isn’t swapping Tina’s best interests for a faster closing or a higher commission somewhere down the line. That trust is the foundation of a smooth, cooperative process.

• They prevent misunderstandings: Full disclosure and clear records reduce the chance of surprises. A buyer who discovers hidden defects after closing can lead to lawsuits or resentments that linger long after the deal is done.

• They support accountability: When something goes wrong, fiduciary duties provide a framework for accountability. That means remedies are possible and expectations are clear.

In a world of multi-party deals, disclosure requirements, and evolving laws, keeping fiduciary duties front and center isn’t just good etiquette—it’s a shield for everyone involved.

From theory to practice: how Brenda should act

Let’s walk through how these duties show up in a real, everyday transaction. The goal is to move beyond abstract ideas and into actions you can recognize at the kitchen table, at a signing, or during a showing.

• Loyalty in action: If Tina’s goal is to buy a home under a specific price, Brenda shouldn’t steer Tina toward a higher-priced property just to win a commission on a bigger sale. If Brenda has a potential conflict (say, advising Tina on a house that Brenda also has a stake in), she should disclose it and handle it ethically—often by stepping back or obtaining proper consent.

• Full disclosure with hard facts: Suppose Tina asks, “Is there any issue with the roof?” Brenda isn’t allowed to sugarcoat or omit. She should share known issues, past inspection notes, and any buyers’ considerations that could affect Tina’s decision. If Brenda doesn’t know the full story, she should seek out reliable information and communicate what’s known—and what isn’t.

• Confidentiality as a trust vow: Tina might have a target price or a preferred closing date. Brenda must protect that information unless Tina agrees to share it or it’s legally required to disclose. This protects Tina’s negotiating posture and keeps the process fair.

• Obedience within the law: Tina might instruct Brenda to push for a quick close. Brenda can pursue that, but she must stay within legal and ethical boundaries. If Tina’s plan would violate laws or risk fraud, Brenda should push back with safe, compliant alternatives.

• Accountability and records: Every email, every document, every escrow instruction should be organized and accessible. If Tina wants a clear trail showing how offers were negotiated and how decisions were made, Brenda should provide it.

• Reasonable care and diligence: This means staying current—knowing market trends, understanding financing terms, recognizing inspection implications, and explaining options in plain language. Brenda should not guess or bluff; she should verify and explain what she finds.

Who owes fiduciary duties—and to whom

A common sticking point is who owes what to whom. In most standard agency arrangements, the real estate professional owes fiduciary duties to the client. The client is the person who hires the agent to represent their interests. The customer, by contrast, doesn’t have the same fiduciary protections; the agent’s duties to a customer are different—often related to honesty and fair dealing, but not the same level of loyalty and confidentiality.

That distinction matters. If Tina is the client, Brenda’s fiduciary duties apply to Tina. If someone else is merely a customer—say, the seller who’s not being represented by Brenda—things shift. It’s essential to spell out who Brenda represents in writing at the outset.

Clear communication helps. When Brenda explains her role and the duties she owes, Tina is better prepared to participate actively and make informed choices. And when everyone understands the framework, negotiations tend to feel more transparent and less fraught.

Misconceptions worth debunking

Some people think fiduciary duties are optional or situational. Others assume they only kick in in big-money deals. In reality, fiduciary duties are a standard part of the client-agent relationship in real estate. If you’re a buyer, seller, or investor working with a licensed professional, those duties exist in some form, and they shape what you can expect from your representative.

Another common misunderstanding: “confidentiality means never sharing anything.” Not true. There are exceptions. If legal requirements demand disclosure, or if protecting a client’s well-being would require it, a fiduciary can share information—but only in a targeted, careful way.

A quick note on the broader landscape

This topic isn’t some arcane legal jargon reserved for lawyers. It ties directly into how real estate markets function, how disclosures protect consumers, and how professionals stay accountable to high standards. Courses and assessments from reputable real estate education providers, like The CE Shop and other accrediting bodies, emphasize these duties because they’re the spine of ethical practice. Understanding fiduciary duties helps you see why licensees are more than a set of rules—they’re guardians of trust in every transaction.

Practical tips you can use tomorrow

• Get it in writing: Have a clear written agreement that defines who Brenda represents and what duties apply. This helps prevent misunderstandings later.

• Ask and document: If Tina wants to keep certain information private, record that preference and how it will be handled.

• Keep your records tight: Save emails, disclosures, and negotiation notes in one organized place. It’s easier to review and proves accountability.

• Seek clarification when in doubt: If something feels off, ask questions. It’s better to pause and verify than to push forward with guesswork.

• Know when to bring in others: For complex issues, involve other professionals—lawyers, inspectors, mortgage specialists—so Tina gets complete, accurate guidance.

• Reflect on the bigger purpose: Beyond winning a price, fiduciary duties aim to protect Tina’s financial health and peace of mind.

A closing thought—trust as a practical tool

Here’s the thing: fiduciary duties aren’t abstract ethics popcorn you can skim and file away. They’re practical, daily commitments that shape every decision, every conversation, every disclosure in a transaction. When Brenda acts with loyalty, transparency, confidentiality, and care, she creates a space where Tina can navigate a big decision with confidence.

If you’re studying this material as part of the The CE Shop National Exam resources, you’re not just memorizing definitions—you’re building a mental toolkit. You’ll learn to identify when duties are being respected and when they’re at risk. You’ll see how a well-handled fiduciary relationship can prevent missteps and protect real money, real time.

Bottom line: in a real estate deal, fiduciary duties are the backbone of trust. Brenda owes Tina a bundle of commitments that go far beyond price negotiations. They shape the experience, the outcomes, and the peace of mind that comes with knowing someone is looking out for you. When you recognize and respect those duties, you’re not just completing paperwork—you’re delivering a professional standard that keeps communities thriving, one transaction at a time.