New York Real Estate Salesperson ExaminationNew York State Specific Laws and RegulationsEasy
A real estate broker in New York manages a rental property. A tenant reports a broken dishwasher. The broker delays addressing the repair for two months, despite repeated requests. This inaction could be considered a breach of which ethical duty owed to the landlord?
- ADuty of Reasonable Care and Diligence.
- BDuty of Obedience.
- CDuty of Loyalty.
- DDuty of Confidentiality.
Show answer & explanationAnswer & explanation
Correct answer: A. Duty of Reasonable Care and Diligence.
The duty of reasonable care and diligence requires an agent to exercise skill, expertise, and care in representing their client's interests. Delaying necessary repairs for an extended period demonstrates a lack of diligence and could harm the landlord's property and tenant relations.
Why the other options are wrong
- B. Obedience relates to following lawful instructions, but the scenario describes a failure to act diligently, not a refusal to obey a direct instruction.
- C. Loyalty relates to acting in the client's best interest, but 'reasonable care' more specifically addresses the competent performance of duties.
- D. Confidentiality relates to protecting private information, not performing duties.
Duty of Reasonable Care and Diligence
An agent's fiduciary duty to exercise skill, expertise, and care in performing their responsibilities, acting competently and promptly in the client's best interest.
- Requires competence and effort.
- Includes prompt action.
- Breached by negligence or undue delay.
Memory trick: For your client, always 'Care for their affairs with Diligence and Flair'.