The acronym OLD CAR is commonly used to remember fiduciary duties. Which of the following correctly identifies the duties represented by OLD CAR?
Correct Answer
A) Obedience, Loyalty, Disclosure, Confidentiality, Accountability, Reasonable care
OLD CAR stands for Obedience, Loyalty, Disclosure, Confidentiality, Accountability, and Reasonable care, the six traditional fiduciary duties owed by an agent to a client.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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Previous Question
A client instructs the listing agent to refuse all showings to members of a particular religion. Should the agent follow this instruction?
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A listing agent notices that a comparable property nearby just sold for $40,000 less than expected, which could affect the client's pricing decision. The agent promptly informs the client. Which TWO fiduciary duties does this action demonstrate?