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Ga Agency BrretaTransaction_broker_and_ministerial_actsMEDIUM

During a transaction, the buyer asks their transaction broker to explain the difference between a warranty deed and a quitclaim deed. How should the transaction broker respond?

Correct Answer

B) Provide factual information about each type of deed without making recommendations

Correct: Transaction brokers can provide factual information about different types of deeds as this is informational, not advisory. Why not A: Making recommendations about which deed to request constitutes advice. Why not C: While complex legal matters should be referred to attorneys, basic factual information about deed types can be provided. Why not D: This is clearly giving advice and making recommendations, which is prohibited.

Answer Options
A
Explain the legal differences and recommend which type the buyer should request
B
Provide factual information about each type of deed without making recommendations
C
Refer the buyer to an attorney since transaction brokers cannot discuss legal matters
D
Tell the buyer that warranty deeds are always better and they should insist on one

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Related Topics & Key Terms

Key Terms:

transaction_brokerfactual_informationlegal_documents

Related Concepts

The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.

The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.

The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.

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