An Ethical Foundation

Ethics and fiduciary duty are the foundation of trust in real estate.

In my view, ethical behavior is the key to building trust. After nearly 25 years in the real estate business, I’ve seen how ethics have evolved, and why they matter now more than ever.

Sadly, real estate agents are often ranked among the least trusted professionals, a perception the industry has tried to counter by mandating ethics training every two years. Ethics in the industry cover everything from avoiding presumptive bias to resisting the subtle pull of commission-based incentives. And while that might seem excessive, I understand why. When your income depends on persuasion, the temptation to act in self-interest is real.

However, real estate isn’t governed solely by rules, but by interpretation, precedent and a commitment to fairness. It’s not courtroom litigation, it’s about mediation, responsibility and, often, doing what’s right, even when no one is watching. That’s exactly why I’ve always grounded my practice in one simple principle: serve as a true fiduciary — someone held in trust or confidence.

Our fiduciary duty isn’t just legal; it’s foundational. It means putting clients’ interests ahead of our own, acting with care, loyalty, good faith and full disclosure. To me, that’s not just a professional code, it’s a life philosophy.

Understanding Fiduciary Duty: Real-Life Applications

Duty of Loyalty: This means acting solely in the client’s best interest. When I sign a listing agreement with a seller, I’m upfront that I likely won’t produce a buyer myself. Instead, I commit to promoting the sale of their home to the thousands of hardworking agents who might. While this initially surprises some sellers, they eventually appreciate that opening the listing up to the entire market, not just my client pool, is the best way to secure the strongest terms. That's loyalty: representing their interest, not my own.

Duty of Obedience: This requires that agents follow all lawful instructions. The key word here is “lawful.” If a seller asks me to do something discriminatory, I have the right and obligation not to comply. The New Jersey Real Estate Commission provides clear guidelines on this. For instance, if a seller instructs me to omit known water issues on a disclosure form, I’m required to correct that. Misrepresentation isn’t just unethical; it’s a violation of both obedience and loyalty.

Duty of Confidentiality: This means safeguarding personal information that could influence negotiations. For example, revealing that the sellers are getting a divorce could tip buyers to push for faster, lower offers. That’s a breach. However, confidentiality does not cover material issues with a property — those must be disclosed to protect all parties involved.

Duty of Accounting: This requires agents to handle funds with complete transparency. Escrow deposits, for instance, must be documented through formal escrow letters. No commingling of accounts is allowed, and each transaction must have a distinct paper trail. While terms often change during attorney review, all agreements must be in writing and acknowledged by all parties.

My path into real estate wasn't traditional. I studied English and education at Douglass College, then spent 10 years in banking. When Jim Weichert, my late husband’s uncle and co-president and founder of Weichert Realtors, suggested I join the firm, I said no. Twice. I didn’t feel “cut out” for the role. I was juggling three jobs and couldn’t afford to take a risk on commission-based work.

But Jim persisted. “You are honest with a strong work ethic, and people buy people before they buy homes.” Eventually, I said yes, with hesitation.

My first year, I made $7,000. I kept my other jobs. But slowly, I found my footing. Year Two was better. And now, 25 years in, real estate has changed my life and my family’s future.
I share this story not to highlight my journey, but to emphasize that ethics are the foundation of everything we do. In a business built on trust, clients deserve professionals who lead with honesty, loyalty and a deep sense of responsibility.

Ethics aren’t a requirement to be checked off. It’s a commitment to doing right by every person we serve. When done right, real estate isn’t about selling houses. It’s about serving people.

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In the Lead magazine is a collaboration between the Buccino Leadership Institute and the Stillman School of Business’s Department of Management. This edition reaffirms Seton Hall’s commitment to fostering innovative, ethical and impactful leadership. Stay ahead of the curve — explore the Fall 2025 issue of In the Lead.

Categories: Business