NO.1 Job of a Realtor: Fiduciary Duties - DisclosureDec 29, 2022
Hi there! I want to talk to you about the Fiduciary Duty of Loyalty and Confidentiality and Obedience.
So there is from a Fiduciary standpoint when you hire a Realtor, it's very similar to an attorney you've heard us talk about this probably in some of our other videos because it's it's really the number one job of a realtor is the to have Fiduciary Duty to their client which is Confidentiality that is forever what you tell us stays in the vault forever unless it is material to the transaction so there's that confidentiality. Obedience like that means if you tell me to run down and get you a pizza that's not going to happen but if you say I want to take this offer my job is to skillfully guide you based on my experience and my knowledge of Arizona real estate that's it so if I say hey you know um I've gone down this road before and this is what happened this is how it turned out or I see it leading I see this path leading here I will guide you on those things so that you can make an informed decision because I do this day in and day out I've sold hundreds of homes, I have been around for well I've been in informal real estate as a licensed real estate agent for 19 years, but I've been in real estate you know much longer than that so we're going to give you guidance but if you say well I don't want to do path A or B I want to do past C at the end of the day you're the boss, you're the hero in this story, you're the one that's packing the boxes writing the big checks, you're the one that's moving and you hand you have the stress of that move right so if you decide to go another direction, we have to be obedient to that. There's some exceptions so I had somebody this week tell me you know we had their home under contract previously and they it was found they found termites in a couple of their outbuildings and their openings aren't that far from their house and she said "that's ridiculous I don't want you to disclose that don't you tell anybody about those termites". Well that's not going to happen because one of our fiduciary duties is Disclosure. As a seller you have an obligation to disclose as Realtors we have an obligation to disclose anything that we know that is material meaning it could affect your decision to buy that host or it's going to cost you money somewhere down the road right and getting termites treated is is something that a buyer needs to be aware of we're not going to not tell you that there's termites and as much as I want to be obedient to that seller that isn't something that I'm willing to do because it opens me up to a lawsuit, it opens her up to a lawsuit, and I wouldn't be doing my fiduciary duty to her if I didn't disclose that so if a seller knows something about the property they have an obligation to disclose. I'll give you another one we had a seller where they had a big shop and we it turned out the shop wasn't permitted and she said what wasn't a big deal when I bought it nobody told me it wasn't permitted I don't care it's been there for 20 years nobody cares and I said well that may be true all of that is true, I'm certainly not you know arguing that but you still have an obligation to disclose it to the new buyer because you found out it is not permitted and you have that information you have to disclose it if you don't disclose it this is what can happen number one, you're in a lawsuit for non-disclosure, number two, I'm in a lawsuit for non-disclosure and that's not going to happen I am not going to not disclose I mean as much as we love our sellers that's not going to happen so if you have a situation where there's things that you don't want to disclose we are not your Realtors because that isn't something I'm going to do I'm not going to break the law and not disclose something so a lot of times people don't understand they have a legal obligation once they find something out so for example I've had people who have a home under contract- I'm on the buying side and I say you know did your seller update the seller property disclosures outlining everything that was on the summary in that inspection report and they're like no and I'm like well they need to do that or you need to share the inspection report one or the other so that we can see everything that's going on with that house and sometimes realtors get pushback, they're like well you you don't own that report and you don't have any right to it and it's like we have a right to disclosure and once the seller knows something you must disclose it so if you're on the selling side sometimes you may not like what I tell you and you know the thing is is I am not there to, I'm there to give you legal guidance I'm not an attorney but under Arizona law I have the right to practice real estate in Arizona and I take that very seriously and I I need you to disclose as a seller it's the right thing to do and it also protects you and that's something that we very much want to do. So I hope if you have any questions you can call us we have people call us I have people that call me with real estate questions they're like hey you know this house down the street sold and they're saying it's so for this I want to see if that's a really accurate you know whatever the question I had somebody call me the other day on fencing they had a fencing issue and unfortunately I've been through most of this stuff in 20 years right whatever your question is if I can't answer it you know I may direct you to an attorney, I may direct you to a surveyor, but I can be resourceful and that's what we want to do apparently I've got some text messages coming in feel free to call either myself or my daughter Emma my number is
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