License Law & AgencyQuestion 27 of 100

The fiduciary duties an agent owes a principal can be remembered by the acronym OLD CAR. The 'C' stands for:

a.Compensation
b.Contract
c.Compliance
d.Confidentiality

Explanation

OLD CAR stands for Obedience, Loyalty, Disclosure, Confidentiality, Accountability, and Reasonable care. Confidentiality requires keeping the principal's private information secret, even after the relationship ends. These duties define the agent's fiduciary relationship with the principal.

Practice all 100 questions free — no signup required.

Related questions on this topic

Last reviewed: · editorial process

PrepPass Editorial Team · Verified against New York Real Estate Salesperson Licensing Exam · How we review
Report