Fiduciary
National Real Estate Exam glossary · Agency
Definition
A person legally obligated to act in another's best interest with the utmost good faith and loyalty. A real estate agent is a fiduciary to the principal, owing the duties summarized by OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care.
Fiduciary in plain English
A fiduciary is someone the law REQUIRES to put your interests ahead of their own, with total honesty and loyalty. A real estate agent is a fiduciary to their client (the "principal"), which is a big deal — they legally can't cut corners for their own gain. Memorize the duties with OLD CAR: Obedience (follow lawful instructions), Loyalty (your side only), Disclosure (tell you everything that matters), Confidentiality (keep your secrets), Accounting (handle your money honestly), and Reasonable care (do the job competently). Think of a great babysitter or a team captain who's sworn to look out for you first — that's the level of trust the law is demanding.
Related National Real Estate Exam terms
National Real Estate Exam practice questions · National Real Estate Exam flashcards · National Real Estate Exam study guide