A broker seeking to profit beyond their normal commission is violating which fiduciary principle?

The principle of loyalty in a fiduciary relationship requires the broker to place the interests of their clients above their own. When a broker seeks to profit beyond their normal commission, they are prioritizing their own financial gain over the best interests of their client. This undermines the trust inherent in the broker-client relationship and compromises the broker's duty to act in good faith for the benefit of the client.

In this context, a loyal broker would only accept compensation that aligns with the agreed-upon terms with their client, ensuring transparency and fairness in the transaction. The loyalty principle emphasizes that the broker should avoid situations where personal profit motives could conflict with the obligation to serve the client's interests.

While care, confidentiality, and disclosure are also important fiduciary duties, they relate to different aspects of the broker-client relationship. Care involves providing competent advice and services, confidentiality pertains to protecting the client’s private information, and disclosure focuses on informing the client of relevant facts that might affect their decisions. However, seeking unauthorized profits directly contravenes the fundamental duty of loyalty.