The phrase “fiduciary duty” is one of those legal terms that gets tossed around regularly, especially when discussing the relationship between real estate agents and their clients. But what does it actually mean, and is it even required in Virginia? 

Let’s break it down. 

The word fiduciary comes from the Latin word fiducia, meaning “trust.” In legal terms, a fiduciary relationship represents one of the highest obligations one person can owe another. Think about the relationships between doctors and patients, attorneys and clients, or trustees and beneficiaries. In certain circumstances, the relationship between a real estate agent and a client falls into the same category. 

At its core, fiduciary duty means that the agent must put the client’s interests ahead of their own. Not equal to their own. Ahead of their own. 

What makes Virginia unique, however, is that the Commonwealth doesn’t simply rely on the traditional legal concept of fiduciary duty. Instead, Virginia law specifically outlines the duties that real estate licensees owe to their clients. These obligations are written directly into the Code of Virginia and provide a clear framework for agency relationships. 

A helpful way to remember these duties is through the acronym OLDCAR: 

Obedience 

Agents must follow their clients’ lawful instructions. If a buyer says they don’t want to view homes governed by a homeowners’ association, then those properties should be excluded from showings. Of course, agents are never required to follow instructions that would violate the law. 

Loyalty 

Loyalty requires agents to act in their clients’ best interests, even when doing so may not benefit the agent personally. An agent cannot place their own financial interests ahead of the client’s interests or seek personal gain at the client’s expense. 

Disclosure 

Clients are entitled to all information that may be relevant to the transaction. This includes material facts about a property, information about offers, and other details that could impact a client’s decision-making process. Transparency is a critical component of the agency relationship. 

Confidentiality 

Some information shared by a client must remain confidential. For example, if a buyer reveals the maximum price they’re willing to pay, that information cannot be disclosed without permission. Importantly, the duty of confidentiality continues even after the brokerage relationship ends. 

Accountability 

Agents are responsible for properly handling money, contracts, and other documents connected to a transaction. Record-keeping and safeguarding client property are essential responsibilities that carry significant legal and professional consequences. 

Reasonable Care and Skill 

Simply put, agents must be competent. This includes understanding contracts, knowing the local market, meeting deadlines, and providing professional service throughout the transaction. 

It’s also important to understand that not every person with whom an agent works is considered a client. Virginia law distinguishes between clients and customers. Clients are owed the full range of agency duties, while customers receive honest and fair treatment but are not entitled to the complete set of obligations described above. 

Additionally, Virginia allows for different types of agency relationships. In some limited-service arrangements, certain duties may be modified or excluded by agreement between the parties. 

So, do Virginia agents technically owe “fiduciary duties” to their clients? The legal answer is not exactly. The practical answer is that it doesn’t matter much. Virginia law clearly establishes the duties agents owe their clients, and those duties closely mirror what most people think of as fiduciary obligations. 

Call it fiduciary duty or call it statutory agency obligations. Either way, the takeaway is simple: know your duties, understand your responsibilities, and make sure you’re fulfilling them every step of the way.