What does the acronym COLD AC stand for in relation to fiduciary duties?

The acronym COLD AC stands for a set of fiduciary duties that real estate professionals owe to their clients. It encapsulates essential responsibilities that agents have in maintaining trust and acting in the best interests of their clients.

The correct interpretation is that the first letter of each word in the acronym corresponds to a specific fiduciary duty relevant to the real estate relationship.

• Care involves the agent's responsibility to handle the client's affairs with diligence and competence, ensuring that their interests are adequately protected.

• Obedience refers to the agent's duty to follow the lawful instructions of their client, ensuring that the client's wishes are prioritized and respected.

• Loyalty is crucial, as it signifies that the agent must act in the best interest of the client, putting their needs ahead of their own interests or those of other parties.

• Disclosure requires agents to inform clients of all relevant information that could affect their decisions, including potential conflicts of interest.

• Accounting involves keeping accurate and detailed records of all funds and transactions related to the client’s affairs, ensuring transparency.

• Confidentiality is the duty to protect the client’s private information, ensuring that sensitive details are not disclosed without permission.

Each of these elements