What background knowledge is needed for this Oh Agency question?

Ohio's agency disclosure requirements were strengthened in the 1990s following national real estate reform movements that emphasized fiduciary duties. The law specifically addresses the balance between providing accurate market data and ensuring clients have complete information about property history that could affect their purchasing decisions.

What is a good way to remember the answer to this Oh Agency question?

Remember 'EXCLUDE but EXPLAIN' - when distress sales don't reflect market value, exclude them from comparables but explain why to maintain transparency. Think of it like excluding a damaged apple from a price comparison but telling the buyer why that apple was cheaper.

What exam tip applies to this Oh Agency question?

Look for answer choices that balance accuracy with disclosure - Ohio agency questions often test whether you understand that protecting clients means giving them complete, accurate information rather than hiding potentially confusing data.

How does this Oh Agency concept apply in real world practice?

Carol discovers that a $300,000 home sold for $220,000 six months ago because the elderly owner needed immediate cash for medical bills. In her CMA, Carol uses three recent sales of similar homes ($295,000, $305,000, $310,000) as comparables but explains to Dan that the previous sale was a distress situation and doesn't reflect market value, giving him complete context for his offer strategy.

Oh AgencyBuyer_agent_ohMEDIUM

A buyer's agent prepares a comparative market analysis (CMA) for a client and identifies that the subject property's most recent sale was a non-arm's-length distress transaction at a price well below current market value. How should the agent handle this sale when preparing the CMA?

Correct Answer

C) Exclude the distress sale from the comparables and explain to the client why it was excluded and what sales were used instead

Ohio agency law requires a buyer's agent to exercise reasonable care and provide accurate market information. A non-arm's-length distress sale does not reflect true market conditions and should be excluded from comparables. However, the duty of full disclosure requires the agent to explain the exclusion to the client so the buyer understands the basis for the CMA and can make an informed decision.

Answer Options

Include the distress sale as a primary comparable to support the lowest possible offer price for the client

Include the distress sale alongside all other comparables without any additional explanation

Exclude the distress sale from the comparables and explain to the client why it was excluded and what sales were used instead

Exclude the distress sale and present only the adjusted value without disclosing that any sale was omitted

Why This Is the Correct Answer

Why the Other Options Are Wrong

Deep Analysis of This Oh Agency Question

Background Knowledge for Oh Agency

Real World Application in Oh Agency

Common Mistakes to Avoid on Oh Agency Questions

Related Concepts

Single Agency

A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.

Subagency

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.

Transaction Brokerage

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.

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