Agency
A Tennessee licensee who represents a first-time homebuyer owes a heightened duty because:
ATREC requires special disclosure for first-time buyers
BThe duty of reasonable care includes ensuring less experienced clients understand the transaction's complexities✓ Correct
CFirst-time buyers are automatically entitled to a reduced commission
DTennessee law exempts first-time buyers from the Statute of Frauds
Explanation
The duty of reasonable care requires agents to understand their clients' experience level and ensure they understand the transaction. A first-time buyer may need more explanation and guidance than an experienced buyer — the agent must provide appropriate care.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
Math Concepts
State-Specific Concepts
TREC Regulation
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