Do you know the six fiduciary duties you should expect from your realtor representing you?
Whenever a licensed realtor represents you, when you buy or sell with your specific real estate needs, an agency relationship is established. This agency relationship comes with six specific fiduciary duties owed to you as the client.
The acronym that helps us remember best these six duties is: “OLD CAR”, the first letters of each of the six duties spelled out
These six duties you should be able to expect from your realtor:
1.) O – Obedience. – An agent is to promptly and efficiently follow all lawful client requests. Note, I said ‘lawful’ requests. Agents need to be in full compliance with all laws, including disclosure laws, fair housing laws, and all others.
2.) L – Loyalty. – An agent is to act always in the best interest of the client, excluding all other interests, even the self-interest of the agent. This is most fundamental, the agent has to always do what is best for the client.
3.) D – Disclosure. – An agent is to disclose, means let the client know any and all known relevant info that might improve the client’s ability to obtain the lowest price and best terms when buying, or the highest possible price and best terms when selling. Anything that could help the client to get the best deal. – To be clear, this disclosure duty is not to be confused with the Disclosure Law, the seller’s obligation to disclose any known fact, condition or defect, past or present of the property for sale.
4.) C – Confidentiality. – An agent is to safeguard, means keep secret, any client’s confidential information, anything that could weaken the client’s bargaining position. Note, I said confidential information. – To clarify, not diminished is the seller’s obligation to disclose the property condition. An agent should never misrepresent the property condition.
5.) A – Accounting. – An agent is to keep accurate records of client’s affairs entrusted to the agent, including all money, property, all documents & reports, as well as all communication records.
6.) R – Reasonable Care and Diligence. – An agent is to use his/her superior professional skills, knowledge and expertise in a competent manner to assist their client best. An agent is to spot any possible red flags, investigate and discover facts and when needed, always seek and refer clients to other respective specialized qualified experts, e.g. inspectors, architects, structural engineers, soils engineers, lawyers, accountants, electricians, plumbers, roofers, etc..
That’s the ‘OLD CAR’ for you to remember..
Always consult with your favorite qualified legal professional when it comes to legal issues.
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Thanks for watching, until next time – Aloha