FIDUCIARY (TRUSTED) RELATIONS WITH THE REALTOR. WHAT DOES IT MEAN?
This formulation dates back to the times of Cicero, when, as we know, the civil-legal defense against deception developed:
Ne propter te fidemve tuam captus fraudatusve sim (Cicero, De officiis, III, 17. 70).
(That because of you and your "honesty" I was not entangled and deceived.)
Unfortunately, we, realtors, often do not realize that the client does not come to us with an apartment that he himself can not sell, or money that he himself can not spend. He comes to us with his PROBLEM, which we must help him to solve. And for us to solve this problem, he must trust us.
Having received reliable, and, more precisely, personal reasons for buying or selling a property, we conclude an agreement with the client. What is the nature of this treaty? A contract of commission, a commission, a contract for the provision of information or legal services, an agency agreement ... Legally, any of these terms can be approached. But best of all, the nature of the relationship with the client under the concluded contract characterizes the legal concept of a "fiduciary transaction".
The legal relations that arose in Roman law from a special fiduciary contract with its various modifications have been preserved to the present day practically unchanged in all world legal systems. Fiduciary legal relations (from Latin fiducia - trust), i.e., legal relations based on trust, originated in Roman private law because of the need to adapt old legal forms to new social relations. All relations that did not fit into the old forms were based solely on trust. Thus, the artificial construction of fiduciary legal relations (fiduciary transactions) replaced the imperfection of civil legislation. It was in Roman law that the main feature of fiduciary legal relations was formed - the discrepancy between the external legal form and the actual internal content.
Fiduciary transactions are transactions based on special, personally-confidential relations of the parties.
The contract for the provision of real estate services is a fiduciary contract - the sale of services based on trust. Since its subject is the commission by the realtor of various meaningful actions in the interests of his client. Such a contract is personally confidential. Fiduciary transactions involve special trust of the parties to each other. Expressed in fiduciarnosti (special trust of the client) to the realtor predetermines the decision of a number of questions which can not be described in legal language and enter into the contract. In such kind of agreements, the principal is always a weak side, since The principal communicates information that is his personal, or perhaps a commercial secret. Therefore, it is extremely difficult for a trustee to control the actions of his realtor, and he does not always understand what he is paying money for. Pay attention to how many times in a conversation with a client we use the word "trust". TRUST is the main factor when choosing a realtor to represent interests in real estate transactions!
Fiduciary transactions are the most insecure in terms of law. The peculiarity of fiduciary transactions is that changing the mutual relations of the parties, loss of their confidential nature can lead to termination of relations unilaterally without specifying motives and without compensation of losses to the other party. It is enough to prove that TRUST is lost. The consequences are clear for both sides: it will be extremely difficult for the trustee to return money even if the performer performs his duties in bad faith. And the realtor, losing the client's trust, will not get a reward: the client, having proved that the trust is lost, can unilaterally terminate the concluded service contract.
Unfortunately, a certain influence of fiduciarity also has on the position of the court in assessing the behavior of a realtor. This affects the application of the courts of those or other articles of the Civil and Criminal Codes in qualifying the actions of a realtor.
The conclusion from this excursion to the theory of jurisprudence is the following: even the steepest contract will not save the realtor from refusal of the client to pay a commission fee if the credibility to the realtor is lost. Having concluded the contract with the client, the realtor should work out the trust received in the beginning of work.
TRUST - the psychological basis of all legal contracts in the civil legislation of Ukraine.
The material is based on the article by Natalia Naumets