Chapter 1
Alaska License Law and Regulations
Course: Alaska Real Estate Exam Prep
Subject: Alaska State Broker Exam Prep
Chapter: Agency Relationships And Brokerage Practice Of Alaska Real Estate Broker Exam Prep
Fiduciary Duties (OLDCAR)
Fiduciary duties are the highest legal duties owed by a real estate licensee to a client. Because agency relationships are built upon trust and confidence, the law requires agents to place the client’s interests above personal interests in matters connected to the representation. Fiduciary duties arise automatically once an agency relationship is created and continue throughout the duration of the agency relationship.
In real estate brokerage, fiduciary duties regulate how brokers handle confidential information, negotiate transactions, manage money, communicate material facts, follow client instructions, and perform professional responsibilities. Failure to fulfill fiduciary duties may result in disciplinary action, civil liability, rescission of contracts, financial damages, or loss of licensure.
The traditional fiduciary duties are commonly summarized using the acronym OLDCAR: