A fiduciary duty exists between which two parties?

A fiduciary duty exists between the principal and the broker. This relationship is foundational in real estate transactions and reflects the trust and confidence placed in the broker by the principal, who is often the client (e.g., a seller or a buyer).

The fiduciary duty encompasses several responsibilities, including loyalty, obedience, disclosure, confidentiality, accountability, and reasonable care. The broker, as the fiduciary, must act in the best interest of the principal, putting the principal's needs ahead of their own and providing full and honest disclosure of any relevant information.

In contrast, the other relationships mentioned do not inherently involve fiduciary duties in the same way. The customer is typically not in a formal agency relationship with the sales associate, which is defined by the fiduciary connection that exists between the client (the principal) and the broker. Likewise, while there may be obligations or ethical considerations between the seller and buyer or between the broker and customer, these do not represent the specific fiduciary duties that characterize the principal-broker relationship.