AgencyIntermediateAlabama Exam

Which of the following is an example of a licensee's duty of 'diligence' to their client?

ADisclosing all known material defects
BActively and promptly pursuing the client's interests and completing tasks in a timely mannerCorrect
CAccounting for all trust funds
DFollowing all lawful client instructions, though outcomes can differ depending on circumstances

Why Actively and promptly pursuing the client's interests and completing tasks in a timely manner Is Correct

Answer B: Actively and promptly pursuing the client's interests and completing tasks in a timely manner

The duty of diligence requires the agent to work actively and promptly on the client's behalf, pursuing their interests with reasonable care and timeliness.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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