Agency
A Texas buyer makes an offer on a home. Their buyer's agent advises them to offer 10% below asking price without substantive market analysis. The agent may be:
AExercising sound professional judgment
BFailing in their duty of care if the advice is not based on competent market analysis✓ Correct
CRequired to recommend the list price
DActing appropriately since the buyer should decide the price
Explanation
A buyer's agent has a duty of competence — to provide advice based on sound market analysis and professional judgment, not arbitrary percentages. Recommending offer prices without adequate research could harm the client by causing them to lose competitive opportunities.
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