Fiduciary Duties
The full duties of trust a broker owes a client, often memorized with the mnemonic OLD CAR.
Quick flashcard
What does Fiduciary Duties mean on the Texas real estate exam?
Answer: The full duties of trust a broker owes a client, often memorized with the mnemonic OLD CAR.
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Fiduciary Duties definition
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.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Contracts & Agency (16 of 80 National)
From definition to recall
See this term inside a real exam question.
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