What is your broker’s responsibility?

Too often the main goal in the real estate is to ‘sell’ rather than ‘represent.’ Way too many agents appear to have an undeclared mission statement that reflects salesmanship rather than representation of buyer or seller. Many state licensing boards innocently reinforce this by identifying the licensee as either brokers or salespersons. A salesperson should be more properly identified as a broker associate or broker affiliate to more properly identify their responsibility that is inherent in this role.

Essentially, both ethically and legally, a real estate agent should be always aware of his fiduciary responsibility to the client. Fiduciary simply means handling funds on behalf of another person or agency.  Integral to that definition is the element of trust which is as much a responsibility, as it is a privilege in representing a client. Unfortunately, real estate produces the most litigation of any industry, a fact that could very easily be a thing of the past if more agents would faithfully execute their fiduciary duties to clients. Doing so would reduce litigation significantly.

There is an adage in this industry that says “20% of all agents make 80% of all sales.” Is this a measure of success? Maybe, but a better measure of success would be one that measures character and responsible representation in a fiduciary capacity.

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