Why fiduciary duty and communication matters more than ever in real estate

At the core of real estate lies one constant: our duty to communicate clearly, act with integrity, and put our clients first. When those principles slip—even unintentionally—the results can be costly.

Not long ago, a situation discussed during one of our coaching calls served as a powerful reminder of how quickly professionalism can unravel when communication falters. While names and details have been changed, the lessons are universal.

When the message gets lost

In this case, a transaction became complicated when multiple buyer’s agents and a listing agent miscommunicated about compensation. Somewhere between the initial outreach, the offer, and the documentation, key information about commission expectations went missing.

The breakdown didn’t just cause frustration. It exposed a deeper issue that every agent must face head-on: How do we maintain fiduciary duty when others in the transaction don’t follow proper protocol?

The real issue is steering and fiduciary duty

One of the buyer’s agents expressed that had they known the seller wasn’t offering buyer-side compensation, they wouldn’t have shown the property. That statement, while perhaps said in frustration, highlights a critical legal and ethical concern.

Steering — deciding what homes to show based on compensation rather than client needs — is not only unprofessional but illegal. Agents must base every recommendation on the buyer’s best interest, not their own compensation. Anything less compromises trust, violates fiduciary duty and weakens public confidence in our industry.

The ripple effect

Even well-intentioned agents can make missteps when trying to smooth things over. In this scenario, the listing agent, hoping to keep the deal together, went back to her seller to amend the agreement and offer compensation that wasn’t part of the original listing.

The intention was good, but the execution undermined the seller’s original wishes and created confusion about representation and value. When agents absorb responsibility for others’ mistakes, they risk damaging client relationships and credibility.

The teachable moment

What should happen instead?

When a situation like this arises, transparency is your best ally. Present the facts exactly as they stand. Explain each option clearly and let your client decide how to proceed. The moment you deviate from the agreed-upon terms to “fix” another agent’s oversight, you shift the fiduciary balance.

Protecting your client means honoring their choices, not rewriting them under pressure.

Raising the bar together

As the industry continues adjusting to new compensation structures, confusion will happen. Some agents will adapt quickly; others will resist. What matters most is how you respond.

Don’t let untrained or misinformed agents shake your professionalism. Stand firm in your fiduciary duty, document everything, and communicate clearly and calmly.

This moment in real estate history is redefining what it means to be a true professional.

Let’s make sure that definition includes transparency, accountability, and the courage to do what’s right — even when it’s inconvenient.

The bottom line? Communication isn’t just a skill; it’s a safeguard. When we hold the line on ethics and clarity, we don’t just protect our clients. We protect the integrity of our entire profession.

We all share the same goal: To protect consumers and elevate the standards of our profession. Conversations like these aren’t always comfortable, but they’re how we get better. And for those of us who train and coach agents every day, we’ll keep showing up to help ensure that better becomes the new normal.

Darryl Davis, CSP, has spoken to, trained, and coached more than 600,000 real estate professionals around the globe. He is a bestselling author for McGraw-Hill Publishing, and his book, How to Become a Power Agent in Real Estate, tops Amazon’s charts for most sold book to real estate agents.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

To contact the editor responsible for this piece: tracey@hwmedia.com