What is a Fiduciary?
A Fiduciary is an agent of a Principal/Client. The legal or special relationship of trust, confidence, or responsibility between two or more parties, most commonly a "Fiduciary" and a "Principal/Client", is called the Fiduciary Duty.

Between an Exclusive Buyer Agent and Buyer-Client, the fiduciary duty is established via written authorization in the form of an Exclusive Buyer Agency Agreement that may or may not include consideration in the form of a retainer. For years it’s been customary for Sellers of real estate on Martha’s Vineyard to sign an Exclusive Listing Agency Agreement with Martha’s Vineyard real estate seller agents. Therefore, the Seller had representation, but the Buyer did not. So what’s the difference between being a Customer/non-Client and a Principal/Client? Statutory common laws and regulations define certain duties that are owed to both; however, fiduciary duties to a Principal/Client require greater responsibility.

The basic duties owed to a Customer/non-Client and a Principal/Client alike are as follows:

Honesty:
No statement or action can result in fraud or misrepresentation. All laws and regulations pertaining to the transaction must be obeyed, including the disclosure of material facts.

Agency and Material Fact Disclosures:
Disclosure of agency relationships, including an explanation of the difference between a customer and principal/client relationship, must be made in a timely fashion so that customers can protect their own interests. (e.g. reveal any confidential information). Material facts about properties must also be disclosed.

Accounting:
The agent is required to report to the principal promptly all money and property received and paid out, and upon request, to tender an account of these actions. This duty also requires the agent to safeguard money or property held on behalf of the principal.

In addition to Honesty, Agency and Material Fact Disclosures and Accounting, a Principal/Client is owed the following fiduciary duties:

Undivided loyalty:
The agent is prohibited from advancing any interests adverse to the principal's interest or conducting the principal's business in such a way as to benefit a customer, a subagent, the agent or any other party to the detriment of the principal's interest.

Obedience:
The agent is required to act, following and abiding all lawful instructions, subject to the principal's continuous control, but not exceeding the scope of the authority conferred by the principal. That is, do not make decisions for the principal.

Reasonable care and diligence:
The agent is required to protect the principal from foreseeable risks of harm, recommending that the principal obtain expert advice or assistance when the principal's needs are outside the scope of the agent's expertise.

Confidentiality:
The agent is prohibited from communicating personal information about the principal that was given to or acquired by the agent within the scope of employment as an agent to the principal. Personal information must be kept confidential unless the client releases the agent, or subagent, from this duty. However, the material facts and defects of a property are NOT confidential.

Full Disclosure:
The agent is required to disclose affirmatively all information concerning the transaction (and property) which might affect the decisions a principal makes, informing the principal what the agent knows.

Accounting:
The agent is required to report to the principal promptly all money and property received and paid out, and upon request, to tender an account of these actions. This duty also requires the agent to safeguard money or property held on behalf of the principal.

Buyer-Customer or Buyer-Client?
What is the difference
and what will it mean to the buyer?

NEEDS ASSESSMENT
IF THE BUYER IS A CLIENT	IF THE BUYER IS A CUSTOMER
Pay full attention to the Buyer's needs	Maintain loyalty to the Seller's needs
Tell the Buyer all that you learn about Sellers	Tell seller all that you learn about Buyers
Keep information about the Buyer confidential	Keep information about the Seller confidential
Focus on expanding the range of choices	Focus on the Seller-client’s property to satisfy the Buyer’s needs
PROPERTY SELECTION
IF THE BUYER IS A CLIENT	IF THE BUYER IS A CUSTOMER
Find the best property for the Buyer-client	Get the best offer for the Seller-client
Promote the Buyer’s search	Limit properties to listed properties only
First opportunity to view new listings	View new listings after Buyer-clients
All properties are available and viewable;	Show only properties listed within Buyer’s the sale price is negotiable affordability range
VIEWING PROPERTIES
IF THE BUYER IS A CLIENT	IF THE BUYER IS A CUSTOMER
Okay to give advice with facts	Just the material facts
Educate the Buyer	Protect the Seller
Okay to compare competing properties	Cannot help the Buyer compare competing properties
NEGOTIATING THE PURCHASE AND SALES AGREEMENT
IF THE BUYER IS A CLIENT	IF THE BUYER IS A CUSTOMER
Give advice with facts	Disclose only material facts
Negotiate on behalf of Buyer-client	Negotiation on behalf of Seller-client
Strengthen the Buyer-client's negotiating position	Strengthen the Seller-client's negotiating position
Share all information about Seller	Share all information about Buyer
Provide price counseling	Volunteer a CMA for the Buyer only if it supports the Seller-client's listing price
Negotiate approved purchase agreement to	Negotiate approved purchase agreement safeguard Buyer-clients protective clauses to safeguard the Seller-client
Suggest financing alternatives that may be in	Suggest Buyer financing alternatives that benefit Buyer-client’s best interests the Seller's interests
Continue services to Buyer-client	Continue services to Seller-client during negotiations during negotiations
FOLLOW THROUGH AFTER THE PURCHASE AGREEMENT
IF THE BUYER IS A CLIENT	IF THE BUYER IS A CUSTOMER
Attempt to solve problems to the Buyer-client's	Attempt to solve problems to the Seller-client's advantage and satisfaction advantage and satisfaction

It should be obvious to you now that what you want is client level service if you're planning on investing in real estate on Martha's Vineyard. SplitRock Real Estate represents people and not property; we strive to provide our buyer clients with 100% service --- 100% of the time.