AgencyIntermediateDelaware Exam

In Delaware, what is the duty of a licensee regarding 'advice and counsel' in an agency relationship?

AAgents must provide legal advice to their clients
BAgents must provide their professional knowledge, judgment, and expertise to help clients make informed decisions, but should refer legal questions to attorneysCorrect
CAgents should avoid giving any advice to prevent liability
DAgents are always strictly required to provide detailed personal investment advice for every single transaction handled, as most licensees would generally expect

Why Agents must provide their professional knowledge, judgment, and expertise to help clients make informed decisions, but should refer legal questions to attorneys Is Correct

Answer B: Agents must provide their professional knowledge, judgment, and expertise to help clients make informed decisions, but should refer legal questions to attorneys

A licensee's duty of care includes providing professional advice and counsel within their area of competence. Agents should share their market knowledge and professional judgment to help clients, while referring matters requiring legal, tax, or financial expertise to the appropriate professionals.

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.

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