Agency & Ethics

Fiduciary Duty

The highest legal duty of care and loyalty an agent owes to their client in a real estate transaction.


Definition

A fiduciary duty is a legal obligation to act in the best interest of another party. Real estate agents owe their clients fiduciary duties remembered by the acronym OLDCAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable Care. The duty of loyalty requires placing the client's interests above the agent's own. Confidentiality survives the end of the agency relationship.

Exam Tip

Loyalty = client first. Confidentiality = survives termination. Disclosure = material facts only.

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