AgencyIntermediateCalifornia Exam

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

AOnly Licensed Dealers Can Arrange Real estate
BObedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable careCorrect
COpen Listings, Dual agency, Commission, Agency, Ratification
DOffer, Listing, Deed, Contract, Assessment, Recording

Why Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care Is Correct

Answer B: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care

OLDCAR is a mnemonic for the six fiduciary duties agents owe their clients: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care (diligence). These form the core of an agent's legal obligations to their principal.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Dual Agency

A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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