National Association of Mortgage Planners
Understanding "True Agency"
Fiduciary* based agency is the highest degree of business trust relationship known to the law, referred to here as True Agency to distinguish it from forms of services demanding lesser duties.
A True Agent
Is a Loyal Fiduciary, Placing the Client's Interest First; Is an Equity Preserver of the Client's Wealth; Advocates for the Client's Interests; Never Seeks To Shift Service or Lesser Duties to the Client; Never Coerces Consent from the Client; Never Compromises Duties to the Client; Avoids Conflict of Interest Situations.
The True Agent's Pledge
As a Fiduciary, I will place my Client's lawful interest above my own and others in a transaction.
As a Fiduciary, I will always attempt to preserve my Client's wealth, in cash, equity, or property interest.
As a Fiduciary, I will advocate only for my Client's position when negotiating with others.
As a Fiduciary, I will provide full disclosure to my Client of all facts and service choices known to me, including their risks and benefits. I will not seek later to lessen the services agreed to by my Client.
As a Fiduciary, I will use reasonable care and due diligence using my best efforts to protect my Client from harm, performing as an expert and specialist to advance my Client's best interest.
As a Fiduciary, I will not coerce consent from my Client, but will obey my Client's lawful instructions.
As a Fiduciary, I will not compromise my duties to my Client, keeping confidential all information concerning my Client, unless permitted by my Client to disclose or if disclosure is required by law or court order.
As a Fiduciary, I will account for all my Client's money and property placed in my control and trust. I will avoid conflict of interest situations with other parties.
* Fiduciary - A person who stands in a special relation of confidence, trust or responsibility in his or her obligation to others.
from The American Heritage Dictionary of the English Language
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