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When Does Fiduciary Duty End?

By
Real Estate Broker/Owner with Beam & Branch Realty TREC #547752

Recently, a situation arose that has inspired this post. I closed a home for a client over a year ago. The client was one of those who was very demanding, wanted everyone to do everything for them, and, treated all parties with disdain. Needless to say, it was touchy and difficult for all involved.

Yesterday, this client reached out via text asking me to "remove" a lien from their home. When I explained that not only could I not do this for them legally this type of situation requires the "owner" of the property to perform their own due diligence with the proper entities. I explained as politely and professionally as I could who they needed to speak with, where these offices were located, phone numbers, etc.

Unfortunately, this was not sufficient for them. The texting became more and more insistent even to the point of accusing myself and the listing agent of sneaking documents by them. Basically, I was being accused of misleading, withholding, and evading information. Wow!

It is hard to not get snarky as we never know what is going in with someone at that moment. However, it is never alright to verbally abuse or accuse someone when you are frustrated. What I have discovered is this client believes that everyone should do the work for them, they should never have to lift a finger, and, that because I closed this transaction with them, I am now their personal secretary until the end of time.

While we can certainly be available to clarify, answer questions, provide reminders about homestead deadlines, give them contact information, etc., there are certain things that we can not do for a client who we have completed a transaction. We cannot do any legal work, we cannot release liens, we cannot file their county taxes, and, we cannot dictate HOA issues. 

As much as I would have wanted to help this client with this lien situation, it was simply out of my hands both legally and fiduciarily. The bottom line is it is never OK to threaten, falsely accuse, or verbally assault those who were involved in a transaction. This includes the agents, the title company, the tax assessor's office, or the lender.

As much as we try to educate our clients, there will always be those who believe we are at their beck and call long after a transaction has closed. While I work hard to maintain relationships, there are some people who you just need to allow to walk right out of your life! Goodbye and best of luck.

In Texas, this is where fiduciary duty ends: 

"In Texas, a real estate agent's fiduciary duty to their client generally ends when the real estate transaction is completed or when the contractual relationship between the agent and the client is terminated. This can occur through the completion of the sale, the mutual agreement of the parties, or the expiration of the contract."

 

 

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Comments(26)

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Adam Feinberg
Howard Hanna Elegran - Manhattan, NY
NYC Condo, Co-op, and Townhouse Advisor

This is why I am glad that all deals here are handled through attorney's. 

Apr 15, 2025 07:19 PM
Dr. Paula McDonald

That is an ideal situation, Adam. In Texas, it is not required so sometimes we run into these sorts of issues.

Apr 16, 2025 01:11 PM
Kathy Streib
Cypress, TX
Retired Home Stager/Redesign

Hi Paula- it's a shame that you had to go through this but you handled it the way a true professional would. You more than fulfilled your ethical and legal obligation. 

Apr 15, 2025 07:31 PM
Dr. Paula McDonald

Yes, it is, Kathy. And, some of these comments insinuate that fiduciary and a relationship is the same thing. Not what I was referring to.

Apr 17, 2025 02:26 PM
Joe Mojica
Laer Realty Partners Bowen - Port St Lucie, FL
Your Home Adds Value to You

I believe you handled it super well.  I had a similar situation. It turned out that he was calling me drunk at  2-3:00 a.m. continually leaving me nasty messages blaming me for his lien. I took the recordings to the police. It took the police to stop him.  

Apr 16, 2025 03:40 AM
Dr. Paula McDonald

Thank you, Joe. I too have had abusive clients. One sent an email to me and one of my agents at 2 in the morning calling us both, the "C" word. Took him to task through our state association for a violation with professional standards. 

Apr 17, 2025 02:29 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Real Estate Broker

Oh wow, Paula... what a pain for you! We have the same in terms of when our fiduciary duty ends. On the good news side, you can probably rest easy that this client won't be calling you to sell her home in the future. :)

Apr 16, 2025 04:29 AM
Dr. Paula McDonald

Absolutely true, Nina. Not enough money in the world to justify wanting to work with them again.

Apr 17, 2025 02:30 PM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

The person you describe seems highly unreasonable, and I don't like working with those types of people at all, haha.  In our state, escrow officers handle the legal aspects like this for the transaction, so I would have reached out to the escrow officer and asked them to contact the client.

Apr 16, 2025 04:53 AM
Dr. Paula McDonald

Brian, that is exactly what I did - sent her the Title Company information. :)

 

Apr 16, 2025 01:11 PM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

It is interesting that part of our duties do not end even after closing. If you are a smart agent you will keep the duties to your client LONG after closing (right up until the next deal).

Apr 16, 2025 06:52 AM
Dr. Paula McDonald

Yes, a professional relationship for sure, but, not fiduciary.

Apr 17, 2025 02:30 PM
Ginger Harper
Coldwell Banker Sea Coast Advantage~ Ginger Harper Real Estate Team - Southport, NC
Your Southport~Oak Island Agent~Brunswick County!

My relationship does not end with my clients.  I stay true to them.

 

Apr 16, 2025 08:18 AM
Dr. Paula McDonald

Yes, relationships are important. Fiduciary, however, is what I am referring to in this post.

Apr 17, 2025 02:31 PM
Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
The Grit and Gratitude Agent

Good morning Paula and I can appreciate the reaction to be "snarky," and yet keep those snarky remarks internally. My fiduciary duty ends at the day of closing except for confidentiality. This is why I place on my listings the following:

Buyer(s) to verify flood zone, lot lines, zoning and cost to connect utilities.

Buyer’s Agent and/or buyer must confirm touring of the parcel when submitting an offer. Agent MLS leannems Leanne M Smith, SA676002000 Broker Lic # LC698642000

 

Apr 16, 2025 08:48 AM
Dr. Paula McDonald

That is good verbiage for sure, Leanne. We have to maintain clear communication regarding our fiduciary and what that means.

Apr 17, 2025 02:33 PM
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

What you were asked to do by your past client had nothing to do with Fiduciary Duty.

It was, unfortunately, an entitled individual expecting you to do something that you cannot do. Kind of like a child stamping their feet and throwing a tantrum. I am sorry you had to endure that treatment. 

Apr 16, 2025 11:54 AM
Dr. Paula McDonald

You are so right, John. It was and continues to be an "entitled" display of immaturity.

Apr 17, 2025 02:33 PM
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

There is no fiduciary obligation in my state... ever.  We only have "contractual obligations" and are only required to do those things that are IN the contract with the client.  

As for your situation, I would have directed them back to the closing attorney if a lien had be pre-existing, or to any attorney if it was filed post closing but not theirs.  I am not a lawyer and don't play one in real estate.  And when people get rude or abusive, the conversation ends.

Apr 16, 2025 01:13 PM
Dr. Paula McDonald

Yep Don, that is exactly what I did and yes, conversations need to end when the abuse begins.

Apr 17, 2025 02:34 PM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
Southern Utah's Preferred Real Estate Agent.

Some self-entitled people think of us as nothing but servants to meet their every need and take us to task, Paula. Glad you kept your cool and bowed out gracefully.

Apr 16, 2025 05:41 PM
Wanda Kubat-Nerdin - Wanda Can!

I can relate, believe me, Paula.

Apr 17, 2025 02:57 PM
Dr. Paula McDonald

Thanks, Wanda. But, let me tell you, it has been difficult to be kind.

Apr 17, 2025 02:34 PM
Kathleen Daniels, Probate & Trust Real Estate Svcs.
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

California law is the same as Texas law in this regard. Dr. Paula McDonald 

The absolute entitled gall of that person!  

Apr 17, 2025 08:28 AM
Dr. Paula McDonald

And, this person does think they are "entitled" because they come from big bucks.

Apr 17, 2025 02:35 PM
Mark Artesani
Keller Williams Realty - Fountain Valley, CA
Huntington & Newport Beach, Fountain Valley Homes

No fun sounds like you did above and beyond your responsibilities. Good Job 

Apr 17, 2025 08:52 AM
Dr. Paula McDonald

Thank you, Mark. I've had to bite my tongue many times.

Apr 17, 2025 02:35 PM
Rain Silverhawk
Sandpoint Realty rain@lakeandhomes.com - Sandpoint, ID
208-610-0011 Sandpoint Idaho Real Estate Realtor

In Idaho, a real estate agent's fiduciary duties typically end when the real estate transaction is complete, all parties have fulfilled their obligations under the purchase agreement and the escrow closes. The duty of confidentiality survives forever or until the information is no longer confidential.  No where in our contracts does it dictate that a client is allowed to be abusive to the agent before, during or after.   You are an invaluable adviser not a slave.  You stayed in your lane and you protected yourself in a professional manner.  The more people are allowed to treat people badly the more apt they are to continue and esculate their bad behavior.  Good job shining a light.  Someone needs to teach this person that you can't make yourself bigger by standing on someoe elses shoulders.

Apr 17, 2025 07:05 PM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
Southern Utah's Preferred Real Estate Agent.

Despite what some ALL ME-ME-ME's think, we are not endentured servants for life to do their bidding, Paula. I'd educate them real quick and sever all ties, they can become someone else's problem.

Congrats on being featured in BananaTudes you certainly have the TUDE!

Apr 18, 2025 10:07 AM
Paddy Deighan MBA JD PhD
http://www.medicalandspaconsulting.com - Vail, CO
Paddy Deighan J.D. Ph.D

very unfortunate turn of events and this can happen to any agent, any time

Apr 20, 2025 02:35 AM
Charles Ross - eXp Realty (Salina Group) | Broker
Salina Group - Salina, KS
Love To Help People

Well said, Dr. Paula McDonald. Understanding where fiduciary duty ends is essential—for both agents and clients. Clarity and professionalism protect everyone involved. #RealEstateTips #ClientBoundaries 🏠📑

Apr 21, 2025 10:01 AM
Mercedes E. Santana
Santana Property Group - New York, NY
Investment Properties

Remaining professional is not always easy as agents, we do take a bit of abuse from time to time.  You handled this perfectly.

Apr 22, 2025 07:28 AM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

I like the definition of when your duty ends in Texas, that is very clear with no room for misunderstanding. I hope this client wakes up to the need to do somethings for himself and not force others to take responsibility for himself.

Apr 22, 2025 10:42 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

There will always be those who feel entitled to service above and beyond. It must be shocking to them when they run into people who say no. 

Nov 11, 2025 09:00 PM