Fiduciary Duties Flashcards
(26 cards)
What does the duty of Obedience require from an agent?
Following all lawful instructions from the client.
Can an agent obey an illegal instruction from a client?
No, agents must only follow legal instructions.
Q: What does the fiduciary duty of Loyalty involve?
Putting the client’s interests above all others, including the agent’s own.
What is a violation of the duty of Loyalty?
Representing both parties in a transaction without disclosure (undisclosed dual agency).
What is the duty of Disclosure?
Informing the client of all material facts that could affect their decisions.
What does Confidentiality mean in a fiduciary relationship?
The agent must not reveal the client’s private or financial information without permission—even after the transaction ends.
What is the fiduciary duty of Disclosure under Nevada law?
A: The agent must disclose all material facts the client needs to make informed decisions.
What is the duty of Reasonable Care and Skill?
The agent must perform duties with competence and diligence, as expected of a licensed professional.
What is the duty of Reasonable Care and Skill?
A: The agent must perform duties with competence and diligence, as expected of a licensed professional.
What does Honesty and Fair Dealing require toward all parties in a Nevada transaction?
Even when not representing a party, the agent must act with honesty and fairness.
What does Full Disclosure of Agency mean in Nevada?
Agents must clearly disclose who they represent using Nevada’s “Duties Owed” form.
What is the agent’s duty regarding Avoiding Conflicts of Interest?
A: The agent must disclose any personal interest in a transaction and avoid situations that compromise loyalty.
Under Nevada law, when must a licensee provide the “Duties Owed” form?
Before or at the time of the first significant interaction related to a real estate transaction
Under NRS 645.252, what is the primary fiduciary duty of a real estate licensee to their client?
To act with absolute loyalty and in the best interest of the client.
Which Nevada law requires written disclosure of the licensee’s agency relationship to all parties?
NRS 645.252(4) and NRS 645.254.
What fiduciary duty continues even after the transaction closes, according to NRS 645.254?
The duty of confidentiality.
According to NRS 645.252, what must a licensee disclose to the client?
All material facts known or that should have been known which could affect the client’s decision.
Under Nevada law, when must an agent disclose any personal interest in a property?
Immediately, per NRS 645.252(2).
What duty is outlined in NAC 645.637 regarding obedience?
The licensee must follow lawful instructions of the client.
What is required for dual agency to be legal in Nevada?
Informed written consent from both parties (NRS 645.252(1)(d)).
According to NAC 645.640, when must a licensee deliver transaction documents to all parties?
As soon as practicable.
Under NRS 645.252, what is a fiduciary’s responsibility regarding presentation of offers?
All offers must be presented promptly and accurately.
