Key Takeaways
- Missouri agents owe fiduciary duties including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care
- The customer vs. client distinction determines what duties are owed
- All licensees must treat all parties honestly and fairly regardless of agency relationship
- Agency relationships are created by written agreement, not by disclosure forms
- Agents must disclose personal interest in any transaction to all parties
Last updated: January 2026
Missouri Agency Relationships and Duties
Understanding fiduciary duties and the distinction between clients and customers is essential for Missouri real estate practice.
Fiduciary Duties to Clients
Missouri agents owe the following fiduciary duties to their clients:
The Six Fiduciary Duties
| Duty | Description |
|---|---|
| Loyalty | Put client's interests above your own |
| Obedience | Follow client's lawful instructions |
| Disclosure | Reveal all material information to client |
| Confidentiality | Protect client's private information |
| Accounting | Account for all money and property |
| Reasonable Care | Use skill, care, and diligence |
Loyalty
- Must not have conflicting interests
- Cannot profit without disclosure
- Client's interests come first
Obedience
- Follow all lawful instructions
- Cannot follow unlawful directions
- Must decline illegal requests
Disclosure
- Reveal all known material facts
- Share relevant market information
- Disclose conflicts of interest
Confidentiality
Information that must be kept confidential:
| Confidential | Example |
|---|---|
| Motivation | Why client is buying/selling |
| Financial ability | How much client can afford |
| Price limits | Bottom line or maximum |
| Personal information | Family circumstances |
Note: Confidentiality survives the agency relationship.
Customer vs. Client
Definitions
| Term | Definition |
|---|---|
| Client | Person represented by the agent |
| Customer | Person NOT represented by the agent |
Duties to Customers
Even when not representing someone, licensees owe:
| Duty | Description |
|---|---|
| Honesty | Cannot lie or deceive |
| Fairness | Must treat fairly |
| Material disclosure | Disclose adverse material facts |
| No misrepresentation | Cannot make false statements |
Creating Agency Relationships
How Agency is Created
| Method | Result |
|---|---|
| Written agreement | Creates agency relationship |
| Disclosure form | Information only, does NOT create agency |
| Verbal agreement | May create agency but not enforceable |
Key Point: Agency is created by written listing agreements or buyer representation agreements, not by the Broker Disclosure Form.
Personal Interest Disclosure
When to Disclose
Licensees must disclose personal interest to all parties when:
| Situation | Action Required |
|---|---|
| Buying for self | Disclose licensee status |
| Selling own property | Disclose licensee status |
| Related party transaction | Disclose relationship |
| Financial interest | Disclose any profit interest |
How to Disclose
- In writing
- Before entering into contract
- To all parties in transaction
Termination of Agency
How Agency Ends
| Method | Description |
|---|---|
| Completion | Transaction closes |
| Expiration | Agreement term ends |
| Mutual consent | Both parties agree |
| Revocation | Principal withdraws |
| Renunciation | Agent withdraws |
| Death | Of either party |
| Incapacity | Of either party |
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Test Your Knowledge
Which of the following is a fiduciary duty owed to clients in Missouri?
A
B
C
D
Test Your Knowledge
What creates an agency relationship in Missouri?
A
B
C
D