New York Real Estate Salesperson ExaminationLaws of AgencyMedium
A real estate salesperson is showing a property to a potential buyer. The buyer asks about the property's boundaries, as a fence appears to be encroaching on the neighbor's land. The salesperson, eager to close the sale, states, 'Don't worry, the fence is definitely on this property.' The salesperson has not verified this information. What duty has the salesperson breached?
- ADuty of accounting
- BDuty of reasonable care
- CDuty of obedience
- DDuty of confidentiality
Show answer & explanationAnswer & explanation
Correct answer: B. Duty of reasonable care
The duty of reasonable care requires an agent to use skill, care, and diligence in representing their client. Making an unverified statement about a material fact like property boundaries, especially when it could be a significant issue, constitutes a breach of this duty.
Why the other options are wrong
- A. Duty of accounting deals with handling funds, not factual representations.
- C. Duty of obedience involves following client instructions, which is not the issue in this scenario.
- D. Duty of confidentiality protects client information, which is not relevant here.
Duty of Reasonable Care
A fiduciary duty requiring an agent to use their skills and knowledge to the best of their ability on behalf of their client, exercising competence and diligence.
- Requires due diligence and competence.
- Involves verifying material facts.
- Protects client from agent's negligence.
Memory trick: OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable Care.