Duties of an agent

Question 1

What are the duties of an agent?

Answer 1

OLDCAR

Obedience
Loyalty
Disclosure
Confidentiality
Accounting
Reasonable Care

Question 2

What is obedience?

Answer 2

an agent is obligated to follow all lawful instructions of a client

Question 3

What is loyalty?

Answer 3

putting the interests of the client first; exercising maximum efforts; “Is this offer the best one for the seller, or is it the best one for my commission?”

Question 4

What is disclosure? What is disclosure of representation?

Answer 4

• full disclosure of all information: opinion of value, negotiation strategies, financial condition of other party. The client is entitled to know the same facts that the agent knows.
• upon first contact with a potential transaction, a license holder has to disclose who he represents (may be done orally or in writing).

Question 5

What is confidentiality?

Answer 5

an agent has a duty to keep any confidential information he learns about a client confidential forever (may not disclose confidential information without written consent).

Question 6

What is accounting?

Answer 6

holding funds for a client is held in trust, must be placed in a separate account set up for this purpose.

Question 7

What is reasonable care?

Answer 7

having the competence and expertise to keep clients informed and take care of clients’ property.