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Fiduciary Duties of a Real Estate Agent | What are they? | OLD CAR Acronym

Hi there!

I’m Alixander, local Realtor and real estate agent with the Salt Lake City Real Estate Agency.

Thank you very much for joining us

We appreciate you subscribing to our YouTube channel, subscribing to our podcast, and subscribing to our blog. That way you get all of it, in all the different places.

So thank you.

Now what are we gonna talk about today?

We’re going to talk about Fiduciary Duties of a real estate agent, and what that means for you, the client.

Fiduciary Duties

So…

What our fiduciary duties?

Well, fiduciary is a fancy word for saying Financial duties.

Okay?

They are Financial… duties… that we take on when we become your real estate agency.

Does that make sense?

Okay.

Well, it’s probably still as thick as mud. So let’s make it crystal clear.

And in order to do that, we got to pull out an old acronym. It’s called the “O.L.D. C.A.R.” It rolls out like this:

  • Obedience
  • Loyalty
  • Disclosure
  • Confidentiality
  • Accountability
  • Reasonable care.

That’s the old car acronym, so let’s break it down.

Obedience

What is obedience?

Hey, it sounds silly, “Your wish is my command…”

…but when you ask us to do something in the marketplace, we as your agents, must obey. First and foremost, as your fiduciary agent, we must obey.

Likewise….

Loyalty

Not only must we obey, we must be loyal to the degree of which you have asked of us.

If you say hey, “Can that offer look like this?”

Not only what must we make out offer, we must make it true to you.

Even more so we’re not looking to take sides with anyone else other than you.

That’s loyalty, right?

So let’s move forward

Disclosure

So what is disclosure?

What going to talk to you about what we know, that’s what disclosure means.

We’re going to tell you:

  • what we know about the house
  • what we know about the agents
  • what we know about the deal
  • we’re going to disclose disclose disclose

That will be one way in which we can demonstrate for you that were being loyal to the things of which you have command us to do, of which we want to obey.

Isn’t that fascinating how it all plays in.

All right, let’s get to the second half of this acronym: C.A.R.

Confidentiality

You’re going to be telling us things, that’s only natural.

And likewise, we’re going to be telling you things, that’s only going to be natural. That’s why we’re going to disclose things to you.

So, as such, we are going to be your fiduciary agents that hold what you say in confidence, and more so, with confidentiality.

The take the things that you tell us and be confidential about it.

We’re not going to go and tell the world about the highest price that you’re willing to go for, or the lowest price that you’re willing to sell for. We’re going to go into the marketplace and tell everyone. “Hey, did you hear?” We’re not going to do that. That’s not what a fiduciary agent does that wants to demonstrate obedience, loyalty, disclosure, confidentiality…

Now we are moving on to the next one.

Accountability

There is nothing more sensitive, in a financial sense, than your accounts. Now, we are going to be held accountable for our actions, not only with your money do we hold ourselves accountable for how we handle your money, but for how we represent you.

So, thank you very much for understanding that.

Reasonable Care

The next part of this reasonable care is a big deal.

You’re not going to be asking us to do crazy stuff.

“Hey, Alix, would you climb up on that roof? And midnight? I know it’s not icy up there. I just need to know is the roof good there?”

You’re not going to do that to us. You’re gonna be reasonable with us, and we’re going to exercise (our fiduciary duties) obediently, loyally, with full disclosure confidence, accountability, and we’re not going to do crazy stuff.

Okay?

I think that you and I can both agree that being reasonable about your wishes in the marketplace is a tricky thing.

What is unreasonable? What is Not-reasonable.

Well, let us know what your wishes are in the marketplace and we’ll let you know, “Oh… that’s perfectly reasonable.”

And likewise, if there are things that which we can say, “Hey, it would be perfectly reasonable for you to ask us to do this…”

We would love to be able to let you know that.

Conclusion

So I hope this kind of gives you an idea of the O.L.D. C.A.R. acronym and how that rolls out in fiduciary duties of a real estate.

And so if you’re not seeing this out of us, let us know.

We must obey, we must be loyal to your wishes, and in full disclosure we would really would like that feedback… actually.

And in confidence, I hope that you will hold us accountable to the reasonable care that we want to provide you.

So thank you.

Thank you very much for understanding a little bit more about these fiduciary duties.

I’m Alixander, real estate agent with the Salt Lake City real estate agency. I’m just so grateful for you watching these videos, getting involved in our podcast, subscribing to our blog, and commenting below.

So thank you very much.

And yeah…

Have a good day.

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