What does COLAN represent in the context of fiduciary duties?

COLAN is an acronym that stands for the core fiduciary duties that a real estate agent or broker owes to their clients. These duties are essential in establishing trust and ensuring that agents act in the best interest of their clients. The components of COLAN include Care, Obedience, Loyalty, Accounting, and Notice.

1. Care: This duty requires agents to perform their responsibilities to the best of their ability, providing competent service.
2. Obedience: Agents are obligated to follow all lawful instructions from their clients.

3. Loyalty: This involves putting the client's interests above those of others, including the agent's own.
4. Accounting: Agents must keep accurate records and properly account for funds or property entrusted to them.
5. Notice: This duty refers to the necessity of keeping clients informed about significant developments in their transactions.

Understanding these fiduciary responsibilities is crucial for anyone in the real estate industry, particularly for those seeking to obtain or maintain a residential leasing agent license in Illinois. This framework serves to protect both the client and the agent within the professional relationship.

The other choices do not encapsulate the essence of COLAN, as they refer to duties related to tenants, regulatory responsibilities, or general property management rather than the specific fiduci