AgencyIntermediateColorado Exam

A Colorado buyer's agent who fails to conduct due diligence on a property before advising the client may be guilty of:

ANo wrongdoing since the buyer chooses what to buy
BBreach of the duty of care (negligence) owed to the buyerCorrect
COnly an ethical violation with no legal consequences
DA violation only if the property has physical defects, in general

Why Breach of the duty of care (negligence) owed to the buyer Is Correct

Answer B: Breach of the duty of care (negligence) owed to the buyer

Colorado brokers owe clients a duty of care, which requires them to exercise reasonable skill and care in representing their clients. Failure to conduct due diligence and advising a client based on insufficient investigation can constitute a breach of this duty.

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

People Also Study

Study This Topic

Practice More Colorado Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Colorado Quiz →