To whom does Broker B owe his fiduciary duty when hired by Buyer A as a buyer's broker?

Broker B owes his fiduciary duty to Buyer A because she is the principal in the transaction. In real estate, the fiduciary relationship is established when a broker is engaged by a client to represent their interests. In this scenario, Buyer A, as the client, has a special relationship with Broker B that necessitates loyalty, full disclosure, and advice to act in her best interests throughout the buying process.

This fiduciary duty arises from the nature of the agency relationship where the broker must prioritize Buyer A’s interests, safeguarding her confidentiality and providing her with the necessary information to make informed decisions. The primary aim is to advocate for Buyer A, ensuring that her needs and preferences are met above all else, especially during negotiations.

While there may be interactions with Seller A and the seller's broker, Broker B’s legal and ethical obligations are solely directed toward Buyer A, reinforcing the nature of a buyer's agency. This commitment to the buyer means that Broker B is tasked with maximizing the benefits for Buyer A, representing her in dealings with the seller and advocating for favorable terms.