Agency Basics Flashcards
What is an agent?
A person who has been legally empowered to act on behalf of another person or entity.
What is a power of attorney?
A person who has the power to act as another person for that once act.
What are the 6 fundamental responsibilities that the agent must legally follow?
Obedience, loyalty, disclosure, confidentiality, accounting, reasonable care.
What acronym should you use to remember the 6 fundamental responsibilities?
OLDCAR
What does obedience stand for?
Agent must obey the client’s lawful instructions
What is loyalty?
Agent must put their client’s best interests ahead of anyone else’s, including their own.
What is disclosure?
Agent must disclose any information they receive that could benefit the client’s position in a negotiation.
What is confidentiality?
Agents should never disclose any information learned about their clients.
What is accounting?
Agents are responsible for accurate accounting of all money and documentation associated with a transaction.
