Quick Answer
Once you sign a representation agreement with a buyer's agent or a seller signs a listing agreement, that agent owes a set of fiduciary duties built around loyalty, disclosure, and confidentiality.
- Core duties
- Loyalty, care, disclosure, and confidentiality
- Owed to
- The client who signed the representation agreement
- Begins at
- A signed buyer or listing agreement
- Reduced in
- Dual or limited agency arrangements
The Duties Your Agent Owes You
Fiduciary duty generally breaks down into loyalty, putting your interests first, reasonable care and diligence, disclosure of material facts, confidentiality of what you tell them, and proper accounting of any funds handled on your behalf.
These duties are why your agent can't casually mention your top offer price to the other side, or the seller's rock-bottom acceptable number to you, once they represent you.
When Fiduciary Duty Gets Complicated
In a dual agency or limited agency situation, an agent's duty to each side is necessarily reduced, since full loyalty to both a buyer and a seller in the same deal isn't legally possible.
That's part of why Indiana law requires written, informed consent before an agent can represent both sides, so you know exactly what level of advocacy you're getting.
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Frequently Asked Questions — Fiduciary duty
What happens if an agent breaks fiduciary duty?
It can lead to a complaint with the Indiana Real Estate Commission or MIBOR, and in serious cases, legal liability for the agent or brokerage.
Does a transaction coordinator owe me fiduciary duty?
Generally no. A transaction coordinator handles administrative tasks and typically is not acting as your licensed advocate the way your agent does.
Do I need a signed agreement for fiduciary duty to apply?
Yes, generally. Fiduciary duty attaches once you have a signed buyer's agency agreement or listing agreement in place.
Is fiduciary duty the same for buyers and sellers?
The core duties are similar, but they apply to whichever side the agent represents, protecting that client's interests specifically.