What is Fiduciary?
A fiduciary is someone who accepts the responsibility of taking care of the property or needs of another person, to the benefit of that person. The person will place their trust in the fiduciary to be accountable and manage for that person, not for the benefit of the fiduciary. There is a huge element of trust involved, especially if the person receiving services becomes ill, frail or incapacitated.
Agency gives rise to a fiduciary relationship and imposes on the agent certain duties and obligations. These duties and obligations include the following: obedience, loyalty, disclosure, confidentiality, accountability and reasonable care. OBEDIENCE=The agent must follow all lawful instructions of the principal (seller or buyer); LOYALTY=Is undivided. The agent must act only to protect and advance the principal’s interests before those of another buyer or seller; DISCLOSURE=The agent must protect all privileged information about his/her principal. The agent cannot use the information for the interest of the agent or others. Information gained in a client level relationship maintains its confidential nature forever; CONFIDENTIALITY=The agent must protect all privileged information about his/her principal. The agent cannot use the information for the interest of the agent or others. Information gained in a client level relationship maintains it’s confidential nature forever; ACCOUNTABILI
