1. A property manager owes fiduciary duties primarily to the:
Answer & explanation
Answer: D. The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.
agency
fiduciary duties
Fiduciary duties are the obligations of trust that an agent owes to a principal. They are commonly remembered with the acronym OLD CAR: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care. These duties require the agent to place the client's interests above their own and everyone else's. Some states modify or replace these common-law duties by statute, so details vary by state.
- Exam tip
- Use OLD CAR to recall the six duties. A common trap: confidentiality usually continues after the agency ends, and obedience never requires following illegal instructions.
- Example
- A listing agent learns the seller will accept $20,000 less than list price. Loyalty and confidentiality require the agent not to reveal that to buyers.
Related terms & state variants
Sources
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Last verified: 2026-10-23