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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.

The common OLD CAR mnemonic stands for Obedience to lawful instructions, Loyalty, full Disclosure of material information to the principal, Confidentiality, Accounting for money and property, and Reasonable care and diligence. The duty of confidentiality can continue after the agency ends. Separate duties of honesty, fair dealing, and disclosure of known property defects can also be owed to non-client parties. Scenario questions usually describe the conduct and ask which duty was breached.

See also

Dual agencyOne broker representing both buyer and seller in the same transaction.Ostensible agencyAgency created when a principal intentionally or carelessly causes a third party reasonably to believe another person is the principal's agent.

Test the distinction

A relevant question from Agency and Fiduciary Duties, selected because its facts or explanation use this concept.

Agency and Fiduciary Duties ยท 17%Responsibilities of Agent to Seller/Buyer as Principal

Which acronym is commonly used to remember the fiduciary duties owed to a principal?

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

Primary sources

Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.

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. Study California's agency disclosures and the duties that continue when dual agency is properly disclosed and consented to.17%Practice Agency and Fiduciary Duties35 questions on this area, every option explained.Practice

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