1. Which of the following is a fiduciary duty an agent owes the principal?
Answer & explanation
Answer: A. Fiduciary duties are Confidentiality, Obedience, Accounting, Loyalty and Disclosure (COALD), plus reasonable care.
agency
fiduciary
A fiduciary is a person in a position of trust who must act in the best interest of another, called the principal or client. In real estate, an agent who represents a client is a fiduciary and owes duties often remembered as OLDCAR: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care. The fiduciary relationship is owed to the client, while customers who are not represented receive honesty and fair dealing.
- Exam tip
- Clients get fiduciary duties; customers get honesty and fair treatment. Exams often ask which party the agent owes loyalty to.
- Example
- A listing agent who learns a buyer would pay more must still work to get the seller the best price, because the agent is the seller's fiduciary.
Related terms & state variants
Sources
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Last verified: 2026-10-23