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Agency and Fiduciary Duties, 17% of the examination

Fiduciary duty

The duty of trust and confidence an agent owes a principal.

Remembered as OLD CAR: Obedience to lawful instructions, Loyalty, Disclosure of material facts, Confidentiality, Accounting for funds and property, and Reasonable care and diligence. Scenario questions rarely name the duty. They describe a failure and expect you to identify which of the six was broken.

See also

Dual agencyOne broker representing both buyer and seller in the same transaction.Ostensible agencyAn agency arising from conduct that leads a third party reasonably to believe someone is an agent, with no written agreement.

See it in a question

One question from Agency and Fiduciary Duties, so the term lands in the context the exam uses it in.

Agency and Fiduciary Duties ยท 17%Disclosure of Agency

A listing agent learns at an open house that an unrepresented buyer will pay well above asking. What does the agent owe each party?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanour under B&P Code section 123.

Where this is tested

Laws of Agency and Fiduciary DutiesWho you represent, when that duty begins, and what you owe someone you do not represent. California runs its own disclosure regime and permits dual agency with consent, which is where borrowed national study material fails.17%Practise Agency and Fiduciary Duties34 questions on this area, every option explained.Practice

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