Fiduciary Duties
Standard Definition
The legal duties of loyalty, obedience, disclosure, confidentiality, accountability, and reasonable care (OLD CAR) owed by an agent to their client.
Detailed Examination Analysis
An agency relationship is fiduciary in nature, meaning the agent is legally bound to act with high trust and loyalty. Under real estate laws, agents owe their clients six core fiduciary duties: Obedience (follow lawful instructions), Loyalty (place client interests above all others), Disclosure (reveal all material facts), Confidentiality (protect client secrets), Accountability (properly handle all funds), and Reasonable Care (perform duties with professional competence).
Real-World Examination Scenario
"An agent learns that a prospective buyer is willing to pay $10,000 more than their written offer. Under the duty of loyalty and disclosure, the agent must inform the seller of this fact immediately."
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