Fiduciary Duties Flashcards
(11 cards)
What is a fiduciary?
A special relationship of trust where one party is expected to uphold specific fiduciary duties to another within the agency relationship.
What is a fiduciary duty?
A legal obligation of one party to act in the best interest of another.
Who is often a fiduciary?
Someone entrusted with the care of money, funds, or property.
What does obedience entail in fiduciary duties?
Following all the client’s lawful instructions without exceeding authority or making decisions for the client.
What is the duty of loyalty?
To give the client undivided loyalty and prioritize the client’s needs and interests above all others, including one’s own.
What does disclosure mean in fiduciary duties?
Disclosing completely and fully all information concerning transactions and property that might affect the client’s decisions.
What is confidentiality in the context of fiduciary duties?
Keeping the client’s information private and not sharing critical information with anyone else, even after agreements are complete.
What does accounting involve?
Safeguarding all money that comes into your possession and ensuring all funds are handled properly and deposited in a timely manner.
What is reasonable care in fiduciary duties?
Acting competently and capably to serve the client well and having the capacity to handle the type of transaction you are taking.
What is a CMA?
Comparative Market Analysis - an examination of the prices at which similar properties in the same area have recently been sold.
What is a limited agent (dual agent)?
Represents both buyer and seller in a transaction and must disclose this to the client in writing and obtain consent.
