What duty does a broker have towards a third party?

A broker's primary duty toward a third party is to provide full disclosure of all material facts related to a transaction. This obligation is essential because it ensures that third parties, who may not have access to the same information or representation as the client, are adequately informed about any facts that could affect their decisions. This protection helps maintain ethical standards in real estate transactions and fosters trust among all parties involved.

Having a duty of full disclosure embodies the principle of transparency, which is crucial in real estate dealings. It prevents misrepresentation and ensures that all parties have the information necessary to make informed decisions. The responsibility to disclose material facts extends to any relevant details that could influence a third party's interests in the property or transaction, such as defects in the property, zoning issues, or any encumbrances.

While fiduciary duties, loyalty, and client relationships are fundamental aspects of a broker's responsibilities toward their clients, they specifically pertain to the broker-client relationship rather than third-party interactions. The focus on third-party duties emphasizes the broker's role in promoting ethical practices in real estate and protecting the interests of parties outside their direct client relationship.