If you are working toward your real estate license or already practicing as a broker, understanding OLD CAR fiduciary duties in NC real estate is essential.
OLD CAR represents your fiduciary duties to every client: Obedience, Loyalty, Disclosure, Confidentiality, Accountability, and Reasonable Care and Diligence.
These are not just terms to memorize. They guide real decisions every day. The North Carolina Real Estate Commission publishes real case studies that show what happens when brokers ignore or misunderstand their duties. Below are a case studies from NCREC.
Obedience
Obedience means following your client’s lawful instructions.
That word lawful matters. Brokers must understand NC real estate law well enough to recognize when a client’s request crosses the line.
For example, a client might say:
- “Do not present offers below a certain price.”
- “Do not disclose a past but persistent problem with the property.”
- “Deliver this check to a contractor for me.”
- “Avoid showing the property to anyone with a foreign accent.”
- “Sign any good offer on my behalf while I am away on vacation.”
However, each of these instructions would violate NC real estate rules or laws. Because of this, a broker must refuse. Nonprovisional brokers are welcome to register for Post 303 License Law and Commission Rules for free as a refresher course.
Loyalty
Loyalty requires putting your client’s interests above your own.
In one case, a broker listed his daughter’s home and believed the appraisal was incorrect. Instead of presenting the issue and allowing his client-his daughter- to decide, he acted on his own judgment.
As a result, he replaced the client’s authority with his own- a clear violation of loyalty.
In another situation, a broker attempted to purchase her own listing through an associate while misleading the seller about the property’s value. This created pressure for the seller based on false information.
A broker’s personal interest can never come before the client’s best interest.
Disclosure
Disclosure means sharing all known material facts that could impact a client’s decision making.
For example, a listing agent worked with investor sellers who chose not to disclose information about the property on the Residential Property and Owners’ Association Disclosure Statement (RPOADS). Several different buyers entered contracts, completed inspections, and discovered serious issues. Each time, the transaction fell apart and the property returned to the market.
Though the listing agent had access to inspection reports, they did not disclose the issues to future buyers. Because of this, buyers repeatedly entered transactions without full knowledge of the property’s condition.
Once a broker knows about a material fact, it must be disclosed. Period.
Confidentiality
Confidentiality means protecting sensitive client information at all times.
In a designated dual agency situation, a seller shared with their broker that they would accept any offer above asking price because they were going through a difficult divorce. That information was shared and eventually reached the buyer.
As a result, the buyer submitted an offer just $5,000 over asking price- far less than the buyer might otherwise have offered. The seller accepted, unknowingly weakened by the leak.
Motivation, financial position, and negotiating flexibility must remain private unless the client gives permission to share.
Accountability
Accountability means properly handling money and property entrusted to you.
In one case, a property management firm failed to maintain accurate trust account records, commingling funds.
In another situation, a buyer agent removed personal items from a listed property based on a misunderstanding, which enraged the seller and damaged trust.
Although the situations are different, the issue is the same. The broker failed to safeguard what was entrusted to them.
Reasonable Skill, Care, and Diligence
Reasonable skill, care, and diligence require competence and verification.
For example, a broker relied on incorrect square footage from a previous listing handled by his own firm. The error impacted pricing and the transaction.
A competent broker would have measured the property again rather than relying on prior data.
In NC real estate, verifying key details is part of your responsibility to the client.
The Bottom Line
Breaching OLD CAR fiduciary duties in NC real estate comes with serious potential consequences.
Most violations happen when a broker chooses speed, convenience, or personal interest over their responsibility to the client.
When in doubt, slow down, verify your information, and adhere to NC license law and Commission rules.
Always ask yourself, “Does this truly serve my client’s best interest?”
Want to Apply This in Real Situations?
If you want a deeper understanding of NC real estate fiduciary duties, this is exactly what we focus on in the 2025-26 NCREC Update Course.
