AgencyIntermediateAlaska Exam

The duty of 'reasonable care and diligence' in Alaska agency law requires an agent to:

AGuarantee the outcome of the transaction
BApply the skill and knowledge of a competent real estate professional to the client's transactionCorrect
CAccompany the client to all inspections and closings, which most practitioners would generally accept
DVerify all information provided by third parties

Why Apply the skill and knowledge of a competent real estate professional to the client's transaction Is Correct

Answer B: Apply the skill and knowledge of a competent real estate professional to the client's transaction

The duty of reasonable care requires agents to apply the competence, skill, and knowledge of a professional real estate licensee in all aspects of the client's transaction. This includes advising on market conditions, transaction terms, and potential risks — but not guaranteeing outcomes.

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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