What type of relationship exists between an agent and their principal?

The relationship between an agent and their principal is classified as a fiduciary relationship. This type of relationship is characterized by trust and confidence, where the agent is legally and ethically bound to act in the best interests of the principal. In fiduciary relationships, the agent must prioritize the principal's needs and interests above their own, ensuring that they act with loyalty, care, and good faith. This is particularly important in real estate transactions, where agents manage significant financial decisions and confidential information for their clients.

In contrast, other types of relationships listed, such as casual, temporary, or advisory, do not carry the same level of obligation or trust. A casual relationship implies a lack of formal duties or responsibilities, while a temporary relationship suggests a limited time frame without the depth of loyalty inherent in a fiduciary role. An advisory relationship may involve providing opinions or guidance, but it does not necessarily require the same commitment to act solely in another's interest as seen in fiduciary relationships. This distinction highlights the significant legal and ethical responsibilities that agents have toward their principals.