====== Fiduciary Relationship ======

A **fiduciary relationship** is a **relationship of trust and confidence** in which one party (the fiduciary) must act **in the best interest** of another (the principal).

===== Key Characteristics =====
  * Requires **utmost good faith**
  * Fiduciary must put the **principal’s interests above their own**
  * Common in **agency relationships**
  * Imposes **higher legal and ethical duties**

===== Fiduciary Duties (OLD CAR) =====
  * **Obedience** – follow lawful instructions
  * **Loyalty** – act solely in the client’s interest
  * **Disclosure** – reveal all material facts
  * **Confidentiality** – protect client information
  * **Accounting** – properly handle funds
  * **Reasonable Care and Diligence** – act competently

===== Fiduciary Relationship in Real Estate =====
  * Broker → client
  * Agent → principal
  * Trustee → beneficiary
  * Attorney → client

===== Breach of Fiduciary Duty =====
  * Failing to disclose material facts
  * Self-dealing
  * Commingling trust funds
  * Acting beyond authority

===== Exam Tip =====
  * Fiduciary duties **continue after** the transaction for confidentiality
  * Violation can result in **license discipline and civil liability**