Question 1

What does the acronym COALDA stand for in the context of fiduciary duties?

Accepted Answer

COALDA stands for Care, Obedience, Accountability, Loyalty, Disclosure, and Confidentiality — the six fiduciary duties an agent owes to a principal.

Question 2

Which fiduciary duty requires an agent to follow all lawful instructions given by the principal?

Accepted Answer

The duty of Obedience requires the agent to follow all lawful instructions of the principal, even if the agent disagrees with them.

Question 3

What does the fiduciary duty of Loyalty require a real estate agent to do?

Accepted Answer

Loyalty requires the agent to put the principal's interests above all others, including the agent's own interests.

Question 4

How long does the fiduciary duty of Confidentiality survive after an agency relationship ends in New York?

Accepted Answer

The duty of Confidentiality survives indefinitely — it continues even after the agency relationship has been terminated.

Question 5

Which fiduciary duty obligates an agent to disclose any information that might affect the principal's decision-making?

Accepted Answer

The duty of Disclosure requires the agent to inform the principal of all relevant facts and information that could affect the transaction.

Agency Relationships – NY Real Estate Salesperson Exam

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