Oregon 30-Hour Real Estate Law Practice Test

Under which fiduciary duty is an agent acting when delivering paperwork to clients after closing?

1. The duty of care

2. The duty of loyalty

3. The duty of accounting

4. The duty of obedience

The correct answer is: The duty of accounting

The correct answer is grounded in the concept of the duty of accounting, which refers to an agent's responsibility to provide clients with a clear and accurate record of financial transactions, including the delivery of documents or paperwork after the closing of a real estate transaction. This duty ensures that clients are kept informed about their financial interests and maintains transparency between the agent and the client. Delivering paperwork after closing is a key part of fulfilling this duty, as it involves not just the transmission of documents but also ensures that all financial matters related to the transaction are accounted for and documented properly. This completion of the process reassures the clients that their affairs are handled with accuracy and professionalism. The other duties, such as care, loyalty, and obedience, have distinct definitions. While these duties overlap in the fundamental responsibility of the agent to act in the clients' best interests, they do not specifically pertain to the act of delivering paperwork. The duty of care involves providing competent advice and performance, the duty of loyalty mandates that agents act in the best interests of their clients without conflicts of interest, and the duty of obedience requires agents to follow lawful instructions from the clients. However, none of these explicitly captures the accountability and transparency inherent in delivering and documenting after closing, which is why