AgencyIntermediateCalifornia Exam

The duty of 'reasonable care and diligence' requires a real estate agent to:

AGuarantee the success of every transaction, per standard fiduciary practice in the industry
BUse the skill, care, and diligence of a competent real estate professionalCorrect
CAlways obtain the highest price for the seller, under standard California agency practice
DAvoid making any recommendations to the client, as commonly applied in brokerage relationships

Why Use the skill, care, and diligence of a competent real estate professional Is Correct

Answer B: Use the skill, care, and diligence of a competent real estate professional

The duty of reasonable care requires agents to perform with the competence and diligence expected of a skilled real estate professional — including staying current on market conditions, disclosing known facts, and advising clients appropriately.

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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