A listing agent notices that a comparable property nearby just sold for $40,000 less than expected, which could affect the client's pricing decision. The agent promptly informs the client. Which TWO fiduciary duties does this action demonstrate?
Correct Answer
C) Disclosure and reasonable care
Disclosure is fulfilled by sharing material information that could affect the client's decision, and reasonable care is demonstrated by diligently monitoring market conditions and verifying comparable data.
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The acronym OLD CAR is commonly used to remember fiduciary duties. Which of the following correctly identifies the duties represented by OLD CAR?
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During a showing, an agent tells a prospective buyer that the kitchen is 'absolutely gorgeous' and that owning the home will make the buyer 'the envy of all your friends.' The agent uses no measurable specifics — no dates, no dimensions, no factual claims about appliances or systems. The buyer relies on this enthusiasm in part when deciding to make an offer, but later sues the agent claiming the kitchen does not feel as gorgeous as advertised. The court finds no actionable misrepresentation because the statements lacked verifiable factual content. How should the court properly classify the agent's statements?