Luz  A Rodriguez REALTOR DRE 01229566
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Understanding the Differences in Level of Care - 7/2/2025

When working with a real estate agent, it's important to understand the level of responsibility they have toward you as their client. In almost all cases, when a seller lists their home with an agent, an agency relationship is formed, meaning the agent owes the seller a fiduciary duty - a high level of care and loyalty.

The same can apply to buyers when they enter into an agency agreement with their agent. However, some agents may work with buyers without an agency relationship, which means they are not required to act as fiduciaries.

Since each state determines its own agency laws, it's essential to know what kind of representation you're receiving.

Reasonable Care: The Basic Standard

At a minimum, all real estate agents must provide reasonable care, meaning they must perform their job competently and ethically. This includes:

  • Providing accurate information about the market
  • Assisting with paperwork and transaction details
  • Meeting deadlines and following legal requirements

Agents working with buyers without an agency relationship are still required to follow state laws and act professionally but are not obligated to provide fiduciary-level loyalty, confidentiality, or full disclosure.

Example: A buyer is casually working with an agent who has not signed a formal agency agreement. The agent helps them view homes and answers questions but does not advise on negotiation strategies or disclose details about the seller's motivation. This is because, without an agency agreement, they are not required to act in the buyer's best interest.

Fiduciary Care: The Highest Level of Representation

When an agent has an agency relationship with a client, whether a seller or a buyer, they owe them fiduciary care - meaning they must act in their best interests at all times. This includes:

  • Loyalty ... Prioritizing the client's interests above all else
  • Full Disclosure ... Sharing all relevant information, even if it affects the agent's commission
  • Confidentiality ... Keeping sensitive client details private
  • Avoiding Conflicts of Interest ... Ensuring no actions benefit the agent at the client's expense

Example for Sellers: When a homeowner lists their property with an agent, that agent must act in the seller's best interests—pricing the home strategically, marketing it effectively, and negotiating the highest possible price.

Example for Buyers: A buyer who signs an agency agreement with an agent can expect full loyalty, negotiation strategies tailored to their best interests, and transparency about market conditions.

Why This Matters for Buyers and Sellers

In most instances, for sellers, an agency relationship is standard, ensuring full fiduciary protection from their listing agent.

For buyers, agency agreements secure a higher level of representation, ensuring their agent negotiates the best price, provides inside market knowledge, and advocates for them at every step. Without an agency agreement, buyers should not expect the same level of loyalty or disclosure.

Know Your Agency Relationship

Before working with an agent, ask:

  • Will you act as my fiduciary agent or just provide reasonable care?
  • What level of loyalty, disclosure, and confidentiality can I expect?
  • What agreements are required in my state before we move forward?

Understanding the difference between reasonable care and fiduciary care ensures you make informed decisions when working with a real estate professional. If you're planning to buy or sell, let's discuss how I can represent your best interests every step of the way.

Real estate agency laws vary by state, and the level of care and representation you receive depends on the type of agency relationship established. Before entering into a written agreement, your agent can explain the specific duties they owe you, including whether they will provide fiduciary care or reasonable care based on your agreement. It is always recommended that buyers and sellers fully understand their agency relationship and the obligations it entails before proceeding with any real estate transaction.

If you have any questions about how agency representation works in your state, your real estate professional can provide guidance tailored to your situation.

Luz A Rodriguez DRE 01229566 CRS ABR GRI SFR Probate Certified Green Designatio LA Realty Services -DRE 01330108 Chino, CA (949) 838-4552 DRE 01229566 I have guided sellers through the real estate process for the last 27 years. I have seen the market's ups and downs, short sales, and foreclosures. With my knowledge and experience, I'll make sure you find the best price possible in the shortest time and alleviate any fears or issues. Our exceptional team is always ready to collaborate with you on all the necessary steps, from the initial stages to the final closing. We are fully prepared to serve you! Call me now at 949-838-4552 I love the real estate business and have never lost my strong eagerness to buy and sell real estate. I pledge excellence in real estate services and am called to serve you with integrity and dedication that exceeds your expectations. I have had my real estate license since 1997 and have been both CRS and GRI agents. I also have the NAR designations GREEN and SFR. Experience: Luz A. Rodriguez has been a licensed REALTOR since 1997. She also passed the required loan officer examination in 2010. Her solid experience, more than 26 years in marketing and sales, gives her an edge in selling your home or buying a property. She is proficient in writing and negotiating contracts, which will help her do things right from start to finish. Commitment and Dedication: Luz is a full-time agent dedicated to the profession, active in the local market, and committed to providing exceptional service. Luz is honest, reliable, professional, and ethical. Education: Luz graduated from St. Paul's College in Manila, Philippines. She has obtained various certifications and designations related to specialized real estate transactions. She strives to stay informed in a constantly changing environment by attending workshops, webinars, and seminars, both live classes and through the Internet. She is committed to providing quality service and representation on behalf of clients. Communication: Luz prioritizes regular communication with clients. She employs modern technology to stay in touch with them. She believes that communication is the most important ingredient in any successful relationship. You will never have to say, "I never heard from my agent." My Credentials and Designations are as follows: * Certified Residential Specialists (CRS) * Accredited Buyer"s Representative (ABR) * Graduate of Real Estate Institute (GRI) * Certified Distressed Property Expert (CDPE) * Accredited Buyer's Representative (ABR) * Short Sale & Foreclosure Resources (SFR) NAR Designation * Home Affordable Foreclosure Alternative (HAFA) * Certified Probate Real Estate Specialists (CPRES) * NAR's Green Designation (Green) NAR Designation Contact Me Visit my Website Send a Referral Subscribe to Newsletter