To whom does a broker owe the fiduciary duty of care?

A broker owes the fiduciary duty of care primarily to the client or clients employing them. This duty forms the foundation of the broker-client relationship, which includes obligations such as loyalty, confidentiality, and full disclosure. The fiduciary duty is essentially a legal and ethical relationship of trust and confidence where the broker must act in the best interests of the client, providing knowledgeable guidance and taking prudent actions that serve the client's interests.

Clients are the entity that hires and relies on the broker's expertise to navigate the complexities of real estate transactions. This relationship is governed by the principles of agency law, which dictate that the broker must prioritize the client's needs above their own interests or the interests of any third parties.

In contrast, the other options suggest obligations to parties that do not establish a fiduciary relationship. While the real estate agency may have its own internal policies, it does not replace the individual obligation to the client. The general public and local government are entities that a broker may interact with, but they do not create the same legal responsibilities inherent in a fiduciary relationship. The ethical framework of real estate practice places client interests at the forefront, reinforcing the significance of the duty of care owed to clients by brokers.