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Unit 4: Agency & Disclosure

Authorized Relationships, Duties, and Disclosure

4
7 exam questionsHigh Priority
Agency relationships, fiduciary duties, and disclosure requirements.

Quick Explanation

5 min read

Agency relationships define who a licensee represents. In Florida, the DEFAULT relationship is Transaction Broker — limited representation for both parties. Single Agent means full fiduciary duties to ONE party. OLDCAR is the memory trick for fiduciary duties.

Key Points — What Matters for the Exam

1
Transaction Broker = Florida's DEFAULT — limited representation, no full fiduciary duties
2
Single Agent = full fiduciary duties to one party (OLDCAR)
3
OLDCAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable Care
4
No Brokerage Relationship = no representation, only facilitates transaction
5
Material facts MUST be disclosed — anything affecting buyer's decision or price
6
Designated Sales Associate: one rep for buyer, one for seller in same brokerage

Memory Trick

OLDCAR = the duties of a Single Agent. OLD CAR drives you to the closing: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable Care.

Common Trap Answers — Don't Fall For These

Transaction Broker is the DEFAULT in Florida (not Single Agent)
Transaction Broker does NOT owe full fiduciary duties
Material facts must be disclosed even if the client says not to

Key Terms for This Unit (3)

OLDCAR
Fiduciary duties: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care.
Transaction Broker
Florida's DEFAULT agency relationship. Provides limited representation to both parties without full fiduciary duties.
Material Fact
Any fact that would affect a buyer's decision to purchase or the price they would pay. Must be disclosed.