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Should Your Real Estate Broker Be a Fiduciary or a Transaction Broker? What’s Best for You?
Every now and then, clients ask truly insightful questions. One we were recently asked was: “Do you work as fiduciaries or as transaction brokers?” The short answer is—we can do either, depending on what best suits your needs.
In most cases, we believe that acting as a transaction broker better serves both buyers and sellers. Inexperienced brokers will try to convince you that representing you alone makes them better serve your needs - maybe not so much. Why? Because fiduciary representation comes with certain limitations. When a broker acts as a fiduciary, they owe full loyalty to one party—typically the seller or buyer—not both. If that broker later finds a potential buyer for their fiduciary client, they can't represent both sides without the client waiving fiduciary rights, which creates a dual agency situation which again doesn't serve one party alone. This limits your options and can reduce your buyer or seller pool. After all, a fiduciary “can’t serve two masters.”
What Is a Fiduciary?
Fiduciaries—such as attorneys or asset managers—owe their clients a high level of trust and loyalty. In law school, we learned to remember fiduciary duties using the acronym OLD CAR:
What About Transaction Brokers?
Even though transaction brokers are not fiduciaries, they are still held to high professional standards—and in many cases, they offer greater flexibility. Here's what you can expect from a qualified transaction broker:
In Summary
Whether you choose fiduciary or transaction broker representation, the most important factor is working with a professional who puts your best interest first—not theirs. We’re committed to guiding you through the process with transparency, integrity, and the experience you deserve.