May 18, 2018
When a real estate agent enters an agreement with a new client, the agent becomes a fiduciary or, in other words, someone who has a legal or ethical relationship of trust. Real estate fiduciary duties outline how an agent should conduct their business on behalf of the client.
Real estate agents need to always keep in mind that they are there for the client, making sure to keep everything transparent and above board. The Balance Small Business breaks it down with the acronym of OLDCAR, which in turn relates to the dependability real estate agents need to exhibit for their clients.
Obedience
When it comes to obedience, real estate agents need to adhere to any and all requests their clients make known. As long as requests aren’t illegal real estate agents need to be willing to work with their clients.
Loyalty
Real estate agents should always be working with the best interest of their client(s) in mind. There can be no room for having their own plans. Conflicts of interest do happen, but in the event that happens, the real estate agent needs to make the right decision that benefits the client.
Disclosure
A real estate agent is obligated to disclose to his client all relevant and material information that they know and that pertains to the overall outline of the agency. Material information relates to any updates when it comes to the seller or buyer changing their mind on something.
Confidentiality
Confidentiality pertaining to the client’s information is always of the utmost importance. Anything relating to the client’s project and plans is highly sensitive, and giving out this information in any possible way could end up with a liability lawsuit. Real estate agents, while encouraged to always keep their quality of work upheld, should still invest in liability insurance for real estate agents, specifically designed for these matters.
Accounting
A real estate agent has to account for all documents, funds, and conversations related to a transaction. Every bit of information should be documented and kept safe, especially when it comes to reporting pertinent documents and financials.
Reasonable Care
This one comes down to somewhat of an interpretation. This is a duty to use skill and knowledge while pursuing a transaction. Anticipating and doing the very best to avoid any harm to clients is the basis for reasonable care and diligence. Real estate agents should always do their best to consider what can possibly go wrong and operate with a code of ethics. Sometimes this can be daunting, but keeping things open and communicative will help to alleviate any problems with a transaction.
About Associations Liability Insurance Agency (ALIA)
The ALIA Team (part of the Riverton Insurance Agency Corporation), specializes in helping real estate professionals find the affordable and comprehensive coverage they need, without the hassle. ALIA dates its roots to 1991 with the founding of FREA, Foundation of Real Estate Associates. In 2013, ALIA was created to work with multiple insurance companies thereby broadening the portfolio of products to customers. In 2017, ALIA was purchased by Riverton Insurance Agency Corp.