PSI Virginia Real Estate Practice Exam

In the context of agency duties, what does "A" in COALD represent?

1. Accounting

2. Advising

3. Analytical

4. Authoritative

The correct answer is: Accounting

In the context of agency duties, "A" in COALD stands for Accounting. This term refers to an agent's responsibility to properly account for all funds and property that they handle on behalf of their client. It ensures that agents maintain accurate records of transactions and provide a clear report of any financial activity related to the client's affairs. This duty helps to build trust between the agent and the principal, as it demonstrates transparency and accountability in managing the client's assets. Understanding COALD is essential for real estate professionals, as it outlines the key responsibilities agents have toward their clients, which ultimately informs their practices and policies in maintaining ethical standards within the industry. The inclusion of "Accounting" highlights the fiduciary duty agents have not only in terms of loyalty and care but also in accurately managing the financial aspects of their representation.