What is the primary role of a fiduciary in a principal-agent relationship?

In a principal-agent relationship, the primary role of a fiduciary is to act in good faith for the principal's benefit. This relationship is built on trust, where the agent (fiduciary) is expected to prioritize the interests of the principal above their own. This duty requires the agent to act with loyalty and care, avoiding any conflicts of interest that could harm the principal's interests.

The fiduciary must make decisions and take actions that align with what is best for the principal, ensuring that the principal's objectives are met. This includes providing relevant information, maintaining confidentiality, and disclosing any potential conflicts of interest.

By focusing on the principal's best interests, the fiduciary upholds the ethical standards of the relationship, which is critical in property management and many other fields where trust is paramount. This foundational duty is what distinguishes fiduciary relationships from other forms of agency or partnership agreements.