Leasing License Practice Exam

What does the acronym COLAN represent in fiduciary duties?

1. Care, Obedience, Loyalty, Accountability, Notice

2. Collaboration, Ownership, Legitimacy, Agreement, Negligence

3. Confidence, Opportunity, Loyalty, Agreement, Notice

4. Care, Obsession, Loyalty, Accountability, Negligence

The correct answer is: Care, Obedience, Loyalty, Accountability, Notice

The acronym COLAN represents the fundamental fiduciary duties that a leasing agent or property manager must adhere to in their role. Each component of this acronym outlines a specific duty owed to the client or principal. - **Care** refers to the obligation to act with competence and diligence when managing the property or transactions. This means a fiduciary must perform their responsibilities with the level of skill and thoroughness expected from a licensed professional. - **Obedience** entails following the lawful instructions of the client, indicating that the fiduciary must act in accordance with the wishes and directives of the principal as long as those directives are legal and ethical. - **Loyalty** involves placing the interests of the client above all others. This means being honest and avoiding conflicts of interest, ensuring that the client’s best interests are always prioritized. - **Accountability** is the duty to report and provide a complete accounting of financial transactions related to the property management. This includes keeping accurate records and being transparent with the client about the handling of funds and expenses. - **Notice** signifies the obligation to inform the client about all material facts and pertinent information related to the property or transactions. This ensures that the client is fully aware and can make informed decisions. Each of these