What are FIDUCIARY DUTIES that a real estate agent typically owes to their client (the party they represent)?

FIDUCIARY DUTIES under traditional agency law: an agent acting for a principal owes loyalty similar to a trustee. Common mnemonics: OLDCAR or COALD or COLD-PIM (variations).

Common duties: (1) OBEDIENCE — follow lawful instructions of the principal; (2) LOYALTY — act in the principal's best interest, above all others (including the agent's own); avoid conflicts of interest; (3) DISCLOSURE — share material facts that affect the principal's decisions (information about the property, parties, market, etc.); (4) CONFIDENTIALITY — keep the principal's confidential information secret (motivation to sell, financial details, willingness to negotiate); typically survives termination of the relationship; (5) ACCOUNTABILITY — handle client funds properly (typically trust accounts), document transactions, keep client informed; (6) REASONABLE CARE and DILIGENCE — act with the skill expected of a reasonable real estate professional. WHEN DUTIES START and END: typically begin at agency formation (often when representation agreement is signed) and continue through closing and beyond for some duties (confidentiality). DUAL AGENCY MODIFIES duties: a dual agent owes loyalty to both parties (which creates inherent conflicts); typically loyalty is REPLACED by NEUTRALITY; specific informed consent is required.

Transaction brokerage: not fiduciary; specific limited duties (accounting, honesty, disclosure of material facts) per state law. THIRD-PARTY duties: even non-clients are owed certain duties (honesty, disclosure of material facts the agent knows that affect the property — like environmental issues — but agent does NOT owe loyalty to non-clients).

State-specific: each state defines duties precisely in its license law and case law; the state portion exam tests YOUR state's specific definitions and applications.