A buyer's broker owes the same fiduciary duties as any agent in an agency relationship. These are often remembered by the acronym OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care. The buyer agent must always act in the buyer's best interest.
A buyer's agent learns that a property has a pending lawsuit over boundary lines. Even though disclosing this information might kill the deal (and the agent's commission), the agent must inform the buyer because of the duty of disclosure.
Remember OLD CAR for fiduciary duties. The most commonly tested duty is DISCLOSURE — agents must reveal all material facts that could affect the buyer's decision, even if it means losing the sale.
Related Terms
Related Concepts
A form that explains to the buyer the types of agency relationships available and the duties associated with each, required to be provided before substantive discussions begin.
The practice of a listing broker sharing commission with a buyer's broker, historically offered through the MLS but now prohibited from MLS display under the 2024 NAR settlement.
An initial meeting between a buyer and agent to discuss the buyer's needs, explain agency relationships, review representation agreements, and establish expectations for the home-buying process.
The duty of a buyer's agent to act solely in the buyer's best interest, avoiding any conflicts of interest and putting the buyer's needs above the agent's own financial interests.
The legal ending of a buyer representation agreement, which can occur through expiration, mutual consent, breach, or specific termination provisions outlined in the contract.
Frequently Asked Questions
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