Duties Of the Agent tothe principal

In any real estate transaction involving real estate agents, the agent owes his duty to whomever hires him—the principal. Traditionally, this has been the seller, although many buyers are now hiring their own agents to represent them. The agent’s main fiduciary duty is to represent the principal, but must deal fairly and truthfully with the customer. While both buyers and sellers can have agents, the seller’s agent will generally have more duties because it is the seller that has the property to sell and must be truthful about the property.
The main duty of the seller’s agent is to sell the property for the highest price possible, while the duty of the buyer’s agent is to get the lowest price possible. Because buyers’ agents are usually paid a commission of the sale, the incentive for the buyer’s agent is antithetical to her duty to her client, which is to get the lowest price possible.
The fiduciary duties of a real estate agent are often epitomized by the mnemonic acronym COLD AC: Care, Obedience, Loyalty, Disclosure, Accounting, and Confidentiality.
Since the agent represents the client, the agent must exercise care in effecting a legal transaction to the best of her ability. The principal hires the agent for her expertise in the real estate market, and to follow the law to finalize the purchase or sale of the real estate. However, the agent must carry out these activities according to the wishes of the principal, but within the confines of the law—obedience. Loyalty means that the agent must place the principal’s interest above all others—even her own. If there is any conflict of interest, it is her duty to divulge it to her principal.