What does fiduciary duty mean in the context of our broker-client relationship?
Most everyone is familiar with the Golden Rule: “Treat others the way you want to be treated.” It’s a simple idea that has guided people for centuries—to be fair, kind, and considerate, because that’s how you’d want others to act toward you.
In a way, the Golden Rule and fiduciary duty are two sides of the same coin. One is a moral principle for everyday life, and the other is a legal and ethical obligation in business and finance. Both are about earning trust by doing what’s right for someone else.
An easy way to think of fiduciary duty is as if it is the Golden Rule of client services. A fiduciary—such as a trustee, advisor, or director—must put their client’s interests ahead of their own and act with loyalty, care, and honesty. The Colorado Real Estate Commission’s required form, Definitions of Working Relationships, states that the agent works solely on behalf of their client to promote the interests of their client with the utmost good faith, loyalty, and fidelity.
In commercial brokerage, we are entrusted with a great deal of sensitive client information throughout the process of working toward a deal closing. This fiduciary responsibility serves as the foundation of the trust our clients place in us and guides how we represent their interests every step of the way.
