National Real Estate Exam (PSI)General Principles of AgencyMedium
A buyer's agent recommends a home inspector who is a personal friend without verifying the inspector's credentials or reputation, resulting in a poor inspection that misses major defects. Which duty has the agent most likely violated?
- ADuty of confidentiality
- BDuty of reasonable care and skill
- CDuty of loyalty
- DDuty of obedience
Show answer & explanationAnswer & explanation
Correct answer: B. Duty of reasonable care and skill
The duty of reasonable care and skill requires an agent to use the knowledge, skill, and diligence expected of a competent real estate professional, including exercising due diligence when making recommendations like referrals.
Why the other options are wrong
- A. Confidentiality concerns protecting sensitive client information, not vetting service providers.
- C. Loyalty involves conflicts of interest, not simply a poor-quality referral.
- D. Obedience relates to following lawful client instructions, not professional competence.
Duty of Reasonable Care and Skill
The fiduciary duty requiring an agent to perform their job with the competence and diligence expected of a reasonably skilled real estate professional.
- Includes proper research and due diligence
- Failure can lead to negligence claims
- Applies to referrals, pricing advice, and marketing
Memory trick: Care = Competent, Careful work