Question

"Reasonable care and skill" in real estate agency duty refers to

professional standards a reasonable person would find adequate.

professional standards commonly maintained by other agents in an area.

the level of service required of a licensee in any profession.

the maximum level of competence a client can expect from an agent.

Which of the following accurately characterizes an 'adverse fact?'

A property condition fact that was concealed from the buyer

A transaction occurrence or fact that adversely affected the principal's negotiating position

A physical property condition that adversely affects the property's value

A negative property characteristic that cannot be remedied

In practice, if you are a facilitator, which of the following is true?

You do not have a signed agency agreement with the seller or buyer.

You may not work with a designated agent representing a seller.

You are bound to fiduciary duties owed the client.

Your broker may or may not be a facilitator on that transaction.

Answer 1

"Reasonable care and skill" in real estate agency duty refers to

Answer : professional standards commonly maintained by other agents in an area.

Explanation : In the real estate agency duty to use care and skills refers to, agent needs to perform his duty with the certain degree of skill and care as compared to members of similar profession and meet the requisite standards.

Which of the following accurately characterizes an 'adverse fact?'

Answer : A physical property condition that adversely affects the property's value

Explanation : Adverse fact is the information related to property which negatively affects its value. It includes :

a. Environmental hazards

b. Material defects

c. Client unable to perform under terms of contract.

In practice, if you are a facilitator, which of the following is true?

Answer : You do not have a signed agency agreement with the seller or buyer.

Explanation : As facilitators are the brokers, therefore you are the customer to them and they hold no responsibilities towards the seller, buyer or the borrower.