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So in reading one thing I found strange is the swordmaster requires sneak attack. I find it strange the master of dueling and a specific weapon links to sneak attack.. Wouldn't the weapon specialization class feature be more fitting?

Swordmaster has Surprise Strike as a talent option, so it's not [t]too[/i] unusual.

In a future supplement dealing with some specializations (like different weaponmaster types and blademaster), that will indeed be the case. For the master of the sword, we feel that rogue works best (rather than, say, fighter). This is also in keeping with the swashbuckler archetype in the Advanced Player's Guide.

Honestly, though, with the Swordmaster's combat-related Adept skills, a rogue really is the way to go. High skill points per level, rogue talents, sneak attack...

I dont see surprise strike on swordsmasters in the pathfinder version. Did you mean in the 3rd edition they have it as a option? Or did you mean cobra strike? Just checking because i thought i misread it.

Would the Swordmasters sence of honor and fair play allow him to use sneak attack?

Depends on how the sneak is acquired, for the swordmaster I would take a high bluff and the improved feint feat so that they can feint to flat foot their opponent and gain the sneak attack damage, it fits quite well.

I agree that most won’t shiv you in the back, but using manoeuvres and feinting provide alternate ways to gain the sneak dice, meaning at 7th level a succesfull feint will allow the swordmaster to add 4d6 to his damage as he just out styles his opponent.

Also very nasty if he picks up the bleeding rogue power. however thats more a bladesman than a gallant