10.6 Protecting the Interest of the Client

A licensee must protect and promote the interests of the client. The REALTOR® Code of Ethics Standard of Practice 1-1 states that the duties imposed by the Code of Ethics are to encompass all real estate activities whether conducted in person, electronically, or through any other means. This obligation is based upon the law of agency and the fiduciary duties that arise out of the principal and agent relationship.

The common law fiduciary duties each agent owes his principal are care, loyalty, obedience, accounting, and disclosure. The ethical responsibilities of an agency relationship are the basis for the conduct of a licensee with respect to his/her dealings with clients and customers. The high standard of conduct required by agency fiduciary duties elevate the level of expected conduct beyond the basic requirements of Real Estate law. In addition to the fiduciary duties owed to a client, a licensee also has an obligation to treat all parties involved in the transaction honestly.

The acronym to remember for what you owe your clients is C LOAD. (Care, Loyalty, Obedience, Accounting and Disclosure)