Before advising a client on pricing, the broker carefully reviews recent comparable sales and verifies the data. Which fiduciary duty is the broker performing?
Correct Answer
A) Reasonable care
Reasonable care is correct because the facts match the fiduciary duty to use competence, diligence, and skill in serving the client. That is the best description of the relationship, right, or legal concept tested here.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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A listing agreement creates an agency relationship between:
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A buyer's agent compensation can be structured as:
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- → A property manager signs a lease on behalf of the property owner. The management agreement authorizes the manager to execute leases for terms up to one year. The manager signs a three-year lease with a commercial tenant. What is the likely consequence?
- → A property manager discovers that a rental unit has a significant mold problem. The manager repairs the visible mold but does not inform the property owner about the extent of the damage or the potential liability. Has the property manager violated any agency duty?
- → The minimum requirement for real estate professional advertising is:
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- → The document defining the broker-seller relationship is:
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- → Under the new rules, how can a buyer's agent be compensated?
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Daniel Chen gives Ethan Price an earnest money check, and Ethan Price promptly deposits it in the proper trust account and keeps accurate records. Which fiduciary duty is this?
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