Key Takeaways
- OLDCAR represents the fiduciary duties: Obedience, Loyalty, Disclosure, Confidentiality, Accountability, Reasonable care
- Loyalty means putting the client's interests above your own
- Disclosure requires sharing all material facts that could affect the client's decision
- Confidentiality continues even after the relationship ends
- All licensees owe honesty and fair dealing to all parties
Last updated: January 2026
Fiduciary Duties
Fiduciary duties are the highest level of legal duty owed to another party.
OLDCAR - The Fiduciary Duties
O - Obedience
| Duty | Description |
|---|---|
| Follow instructions | Client's lawful directions |
| Limitation | Not illegal or unethical |
| Example | Accepting offer per client's terms |
L - Loyalty
| Duty | Description |
|---|---|
| Client first | Put client's interests above own |
| No self-dealing | Cannot buy client's property secretly |
| No conflicts | Disclose any conflicts |
D - Disclosure
| Duty | Description |
|---|---|
| Material facts | All relevant information |
| To client | Full disclosure |
| Known facts | What agent knows or should know |
C - Confidentiality
| Duty | Description |
|---|---|
| Private information | Protect client's secrets |
| Duration | Continues after relationship |
| Example | Seller's minimum price |
A - Accountability
| Duty | Description |
|---|---|
| Account for funds | Track all money |
| Report | Provide accounting |
| Document | Keep records |
R - Reasonable Care and Skill
| Duty | Description |
|---|---|
| Competence | Use professional skill |
| Due diligence | Research and verify |
| Standard of care | What a reasonable licensee would do |
Duties to All Parties
All licensees owe to EVERYONE (client or not):
| Duty | Description |
|---|---|
| Honesty | No misrepresentation |
| Fair dealing | No fraud or deceit |
| Material facts | Disclose known defects |
| Accurate information | No false statements |
Dual Agency Duties
When acting as dual agent:
| Cannot Do | Must Do |
|---|---|
| Advocate for either | Treat both fairly |
| Share confidential info | Maintain secrets |
| Recommend price | Present facts neutrally |
| Negotiate for one | Facilitate communication |
Breach of Fiduciary Duty
| Consequence | Description |
|---|---|
| License discipline | Suspension/revocation |
| Civil liability | Damages to client |
| Loss of commission | May forfeit payment |
| Criminal charges | If fraud involved |
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Test Your Knowledge
What does the "L" in OLDCAR stand for?
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D
Test Your Knowledge
How long does the duty of confidentiality last?
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B
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D