AgencyIntermediateCalifornia Exam

Which fiduciary duty requires an agent to use the skills and knowledge expected of a competent real estate professional?

ALoyalty, as commonly applied in brokerage relationships
BObedience, consistent with typical listing agreement terms
CReasonable care and diligenceCorrect
DAccounting, per standard fiduciary practice in the industry

Why Reasonable care and diligence Is Correct

Answer C: Reasonable care and diligence

The duty of reasonable care and diligence requires agents to apply their professional knowledge and skills competently. This includes staying current on market conditions, laws, and practices relevant to the transaction.

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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