Fiduciary Duties
The full duties of trust a broker owes a client, often memorized with the mnemonic OLD CAR.
Fiduciary duties are the highest duties of care and trust one party owes another. In Texas, a broker who represents a client as an agent owes these duties to that client. The common mnemonic is OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care.
These duties run to a client, the party the broker represents under a representation agreement. To a customer, a party the broker does not represent, the license holder owes honesty, fair dealing, and disclosure of known material defects, but not the full set of fiduciary duties. Confidential information stays confidential even after the representation ends.
On the exam
Exam trap
Tested in
Contracts & Agency (13% of the exam)
From definition to recall
See this term inside a real exam question.
Pass Texas gives you Texas-specific practice, diagnostics across the 14 exam areas, Trap Library, Math Coach, offline access, and one $59.99 purchase. No subscription. No copied exam questions.
Try 5 free questionsRelated terms
- Intermediary
The Texas relationship in which one broker represents both the buyer and the seller in the same transaction with the written consent of both parties.
- Sponsoring Broker
The Texas broker who sponsors a sales agent, supervises the agent's brokerage activity, and is responsible for the agent's acts.
- Material Fact
A fact that affects the value or desirability of property and that a license holder must disclose if it is not readily observable.
This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.