Today I would like to introduce several uses for the OLDCAR. As an article on the subject of real estate, I would first and foremost preface this by the assurance that we will not be discussing this as a housing option. Secondly, I would also acknowledge that, under normal circumstances, a subject and an adjective should not be lumped together into one word. However, the rules change if the term identifies as an acronym, specifically pertaining to the fiduciary duties set forth by the National Association of Realtors for real estate agents. These duties include obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care and diligence.

Although more of a list of virtues that one either does or does not acquire by adulthood, these are also concrete requirements and legal obligations for a Realtor acting as a fiduciary to his/her client.

While some may just enter this world with the desire to be obedient, others of us have to learn it through consequences of some sort or another. Ask one of my daughters, who at the age of 15 had her door removed from her room because she refused to keep it clean. Eventually, she learned to obey that rule. In real estate, the duty of obedience entails following the instructions of the client (within the legal boundaries). Regardless of how unlikely we may think an offer will be accepted — for example, if lowballing and knowledge of multiples exist — we still must submit if the client insists. We can advise, counsel, caution, urge, suggest and dissuade, but ultimately, we must obey.

The duty of loyalty is a big one. The breach of this duty is the most common cause of lawsuits against Realtors. In a nutshell, the agent must act solely in the best interest of their client. When my youngest daughter was a toddler, I would have my oldest babysit when I left. Before I left, I would ask her who her first priority is and the baby would raise her hand and say, “me!” The client is the first and utmost priority. This supersedes any other relationship the agent may have with any other parties in the transaction, including the broker.

The duty of disclosure should be self-explanatory. A Realtor must relate any known material fact about the property to the client. Granted, the material fact must be known before disclosed, which can exclude some unknown hidden or latent issues. However, if a kid was failing at midterm and didn’t disclose it, chances are the parent would find out and then it would be too late to do anything about it. Being fully informed can circumvent problems down the road in any relationship.

Anyone who has ever had a secret they disclosed to one other person and the whole world soon found out (which is likely all of us at some time or another back in high school) knows the importance of confidentiality. Any information that the agent has about the client that is not an item of disclosure should not be shared with anyone unless directed by the client. This can include financial information, buyer or seller motivation, or personal information.

Accounting is another obvious duty. Any monies, deeds or other important documents entrusted by a client to a real estate broker must be safeguarded and accurately recorded.

The duty of reasonable care may seem ethereal, yet an agent is appropriately expected to present the skill, knowledge and education necessary to represent another person in a real estate transaction. In other words, we must do our jobs.

These requirements don’t seem unreasonable. It begs the question as to why we have to memorize an acronym to be sure we adhere to these simple civilities? Either way, if ever a client of a licensed Realtor, you know what to expect.

Jen Fischer is an associate broker and Realtor. She can be reached at 801-645-2134 or jen@jen-fischer.com.

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