Real Estate Agents, Are They Legally Obligated to Put You First

When hiring a real estate agent, you may assume they’re required to act in your best interest.

The answer depends on the type of relationship you establish with them.

Not all agents are legally obligated to prioritize your needs. Some act as fiduciary agents, meaning they are legally and ethically required to advocate for you, negotiate on your behalf, and work solely in your best interest—like a coach guiding you toward success.

Others operate as transaction brokers, serving as neutral facilitators who ensure the transaction runs smoothly without favoring either party—much like a referee in a game. While this can be beneficial in some cases, such as family transactions or straightforward deals, it means you won’t have someone actively advocating for you.

Your location also plays a role. In smaller, lower-population areas, agents often act as transaction brokers due to fewer available professionals, while in larger markets, dedicated fiduciary agents are more common.

To ensure you get the right representation, ask prospective agents these essential questions:

• What types of client-agent relationships exist in this state?

• How would you represent someone in my situation?

• Would you be legally obligated to act in my best interest?

• Do you ever represent both buyers and sellers in the same transaction? If so, how does that work?

Your relationship with your agent can significantly impact your real estate experience. By understanding your options and asking the right questions, you can confidently choose an agent who aligns with your needs and goals.