agency
loyalty
Loyalty is the fiduciary duty requiring an agent to place the client's interests above all others, including the agent's own. A loyal agent will not reveal information that weakens the client's bargaining position, will not secretly profit from the transaction, and must disclose any personal interest, such as buying the client's property or representing a relative. Loyalty is often considered the most important fiduciary duty and is part of the OLD CAR memory aid.
- Exam tip
- Loyalty does not allow lying to third parties; agents must still be honest and disclose material defects to customers.
- Example
- A listing agent learns the seller would accept $20,000 less than list price but does not reveal that to buyers, protecting the seller's position.
Related terms & state variants
Sources
Source verification pending. Confirm current requirements with your state regulator.
Last verified: 2026-10-23