Fiduciary Duty: What Your Littleton REALTOR® Owes You by Law
When you hire a REALTOR® like Bryan Messick in Littleton, you are not just getting a tour guide or paperwork facilitator. You are entering a fiduciary relationship — one of the highest standards of care recognized in law. Under Colorado real estate license law and the REALTOR® Code of Ethics, your agent owes you six specific fiduciary duties that place your interests above their own. Understanding these duties helps you hold your agent accountable and ensures you receive the level of service you deserve throughout your Littleton real estate transaction.
What You'll Learn
Duty of Loyalty — Your Interests Always Come First
Loyalty means your agent must put your interests above everyone else's — including their own financial interests. If Bryan knows a property has issues that make it a poor fit for you, loyalty requires him to tell you even if recommending against the purchase means no compensation. Loyalty also means Bryan cannot steer you toward properties that offer higher compensation to him personally at your expense.
Duty of Obedience — Following Your Lawful Instructions
Obedience means your agent must follow all lawful instructions you provide. If you tell Bryan not to show your address to unqualified buyers, he honors that. If you set a minimum acceptable price, he does not accept offers below it without your explicit approval. However, obedience has limits — Bryan cannot obey instructions that involve illegal acts like concealing material defects or discriminating against protected classes.
Duty of Disclosure — Full Transparency About Everything Material
Disclosure requires your agent to share all material facts that could affect your decisions. For sellers, this includes disclosing known defects, pending assessments, or neighborhood issues that could impact value. For buyers, Bryan discloses everything he learns about a property's condition, pricing history, seller motivation, and market context. In Littleton, where properties sell quickly (median 14 DOM), having an agent who proactively uncovers and discloses relevant information is invaluable.
Duty of Confidentiality — Your Secrets Stay Private
Confidentiality survives the end of your business relationship. Information you share with Bryan — your financial situation, motivation for selling, lowest acceptable price, or deadline pressure — remains confidential forever unless you authorize disclosure. Even after closing, Bryan cannot reveal confidential information to other clients, future buyers of your former home, or anyone else without your permission.
Duty of Accounting — Every Dollar Accounted For
Accounting requires your agent to handle all funds and documents with strict care. Earnest money deposits go into proper escrow accounts. Documents are maintained securely. Any money received on your behalf (like refundable deposits or prorated credits) is documented and promptly delivered. In transactions involving significant sums — like Littleton's median $716,650 home price — proper accounting protects you from financial loss.
Duty of Reasonable Care and Skill — Professional Competence
Your agent must perform with the skill, care, and diligence expected of a competent real estate professional. This includes knowing the Littleton market thoroughly, accurately completing contracts, properly advising on pricing and negotiation strategies, coordinating inspections and repairs, and managing timelines. Reasonable care also means referring you to qualified professionals (lenders, inspectors, attorneys) when situations exceed the agent's expertise.
Frequently Asked Questions
Q.What happens if my REALTOR violates their fiduciary duty?
You can file a complaint with the Colorado Real Estate Commission, which can discipline or revoke licenses. You may also have grounds for civil litigation to recover damages caused by the breach.
Q.Does fiduciary duty apply to both buyers and sellers?
Yes. Whether you are buying or selling, your agent owes you the same six fiduciary duties. The specific applications differ slightly, but the standard of care is identical.
Q.Are all real estate licensees held to fiduciary standards?
All licensed real estate brokers and agents in Colorado owe fiduciary duties to their clients. REALTORS® face additional ethical standards through the Code of Ethics enforced by the National Association of REALTORS®.
Related Resources
Get Your Fiduciary Duty Guide
REALTORS® Duty to Put Client Interests Above Their Own · PDF
Talk to Bryan Today
Bryan Messick is your local real estate expert in Littleton, CO. Call today for a free consultation.
