Question 1

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

Accepted 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?

Accepted 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?

Accepted 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?

Accepted 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?

Accepted 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.

Agency Relationships – Real Estate Broker Exam

Get your Real Estate Broker Exam Pass Plan

Try These Cards

Want to keep studying?

Related Study Decks

Brokerage Law – Real Estate Broker Exam

Contract Law – Real Estate Broker Exam

Contracts & Closings – Real Estate Broker Exam

Fair Housing Laws – Real Estate Broker Exam

Investment Analysis – Real Estate Broker Exam

Land Use & Zoning – Real Estate Broker Exam

More Real Estate Broker Exam Resources

Real Estate Broker Exam Study Guide

Free Real Estate Broker Exam Practice Test

This is 1 of 7 topics