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Agency Relationships – Real Estate Broker Exam Flashcards

Master agency relationships for the Real Estate Broker Exam with 30 targeted flashcards covering fiduciary duties, types of agency, disclosure requirements, and agency termination. These cards focus on high-frequency exam topics including dual agency, buyer representation, and the legal obligations brokers owe to clients versus customers.

30 cards Intermediate Fiduciary Duties Types of Agency Creating & Disclosing Agency Buyer & Seller Representation Termination of Agency

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Preview Questions

Question 1

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

Answer

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

Question 2

Which fiduciary duty requires a broker to follow all lawful instructions given by the principal, even if the broker personally disagrees?

Answer

The duty of Obedience requires the broker to follow all lawful instructions of the principal. The broker need not follow instructions that are unlawful or unethical.

Question 3

A listing broker learns that the seller is willing to accept $20,000 below the listing price. What fiduciary duty prevents the broker from sharing this with the buyer?

Answer

The duty of Confidentiality requires the broker to protect the seller's negotiating position and not disclose information the principal has not authorized to be revealed.

Question 4

What does the fiduciary duty of Accounting require a real estate broker to do?

Answer

The duty of Accounting requires the broker to safeguard all funds and property entrusted by the principal and to provide accurate records of all financial transactions.

Question 5

Which fiduciary duty requires a broker to place the client's interests above the broker's own interests and the interests of third parties?

Answer

The duty of Loyalty requires the broker to act solely in the best interest of the principal, avoiding any conflicts of interest or self-dealing.

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