Free 5-question sample test with instant feedback. See how ready you are.
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.