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Questions and Answers
What does the duty of loyalty require a real estate broker to do?
Which situation would violate an agent's duty of confidentiality?
What is required under an agent's duty of disclosure?
An agent cannot obey unlawful instructions from their principal. Which of the following is an example of such an instruction?
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Which of the following would correctly demonstrate the agent's duty of confidentiality?
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What is the implication of the duty of obedience for real estate agents?
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Which of the following actions would compromise a broker's duty of loyalty?
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What should a real estate broker disclose to the seller regarding potential buyers?
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What constitutes a breach of an agent's duty of loyalty?
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What is expected of a real estate broker in terms of care and diligence?
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Which duty requires an agent to safeguard money and documents belonging to the principal?
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Which of the following is NOT a duty of a buyer's agent?
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What aspect of real estate transactions must a broker actively investigate?
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Why must a buyer’s agent explain earnest money deposits and escrow?
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What is one important task a buyer’s agent is responsible for regarding homeowners' association documents?
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What must a buyer ensure they have ready at closing?
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Which action is part of a buyer's agent's responsibility during the closing process?
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What role does a buyer's agent play when it comes to understanding inspection results?
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What is primarily taken into account when determining the offer price for a property?
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Which professional is specifically mentioned as necessary during the property inspection process?
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What essential role does a buyer agent fulfill in the documentation process?
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In the event of a bad inspection report, what is a crucial action the buyer agent should take?
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What is one way a buyer agent assists in the mortgage approval process?
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What is a real estate agent required to do to fulfill their duty of loyalty?
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Which of the following best describes the duty of confidentiality for a real estate broker?
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What types of information must a broker disclose to their principal under the duty of disclosure?
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In which situation would a buyer's agent violate their duty of obedience?
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Why must a real estate broker avoid conflicts of interest?
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What limitation does the duty of confidentiality impose on a broker representing a seller?
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What does the duty of loyalty prevent a broker from doing?
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Which responsibility of a buyer's agent is crucial when explaining the purchase process to clients?
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What obligation does an agent have regarding the skills they utilize in representing their principal's interests?
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What is a key responsibility of a buyer's agent when searching for properties?
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Which of the following best describes the duty of a buyer's agent regarding the buying process?
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Which action demonstrates a breach of an agent's duty to account for funds?
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What should a buyer's agent do if they notice potential maintenance issues in a property?
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When reviewing closing costs, whose interests should the buyer's agent prioritize?
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What role does a buyer's agent have when preparing an offer for a property?
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How should a buyer's agent handle communication with lenders and title companies?
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Which is a critical duty a buyer's agent needs to perform during the closing process?
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What should a buyer’s agent explain regarding earnest money deposits?
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Which of the following is NOT part of a buyer agent's responsibility during home inspections?
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What is a primary duty of a buyer's agent when assisting in negotiations?
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In which circumstance is a real estate broker considered to have reasonable care?
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Which document is essential for a buyer's agent to review during the closing process?
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Study Notes
Buyer's Agent Duties
- Loyalty: Act solely in the best interest of the buyer, excluding any personal interests or conflicts of interest.
- Confidentiality: Maintain the confidentiality of sensitive information that might weaken the buyer's bargaining position.
- Disclosure: Disclose all relevant and material information to the buyer affecting the property or the transaction.
- Obedience: Follow all lawful instructions promptly and efficiently, except for any unlawful instructions.
- Reasonable Care and Diligence: Exhibit the expertise and skill of a competent real estate professional while representing the buyer.
- Accounting: Safeguard all money and property entrusted by the buyer relating to their real estate transactions.
Buyer's Agent Responsibilities
- Represent the buyer's interests during the entire process.
- Explain the process, contracts, mortgages, pre-approvals, and closings.
- Review closing costs and explain earnest money deposits, escrow, and default.
- Listen and answer questions from the buyer.
- Show properties found online or through research.
- Generate comparable data to assess current pricing for the buyer.
- Review and explain sales contracts, addenda, and disclosure forms.
- Help the buyer prepare and present offers.
- Explain counter-offers and ensure contract ratification.
- Schedule home inspections and option selections for new homes.
- Provide buyer insight into homeowner's insurance and mortgage rate locking.
- Review homeowner's association documents.
- Contact the title company and mortgage lender for updates.
- Resolve issues that might delay closing or void the contract.
- Schedule contractors to address repair issues from inspections.
- Contact the builder's representative for estimated closing dates on new homes.
- Schedule closing time, walk-through inspections, and address walk-through issues.
- Review rent-back agreements if necessary.
- Ensure the homeowner's insurance policy is in place.
- Confirm the readiness of loan documents and seller documents.
- Ensure the buyer has certified funds for closing and proper wiring instructions.
- Provide contacts for utility transfers.
- Be available at closing.
Buyer's Agent Duties
- Buyer's agents act as a trusted advisor, helping buyers find the right property, negotiate a fair price, and navigate the buying process.
- L.C.D.O.R.A. represents the fiduciary duties owed by an agent to their principal: Loyalty, Confidentiality, Disclosure, Obedience, Reasonable Care & Diligence, and Accounting.
- A buyer’s agent is obligated to act solely in the best interests of their client, avoiding any conflicts of interest.
- Buyer's agents must keep confidential information that could harm their clients' negotiation positions.
- Agents are obligated to disclose all material information related to the transaction, including offers received, buyer’s intention to subdivide/resell, and any information affecting property value.
- Agents must obey lawful instructions from their clients but cannot follow unlawful instructions like discriminatory practices or misrepresentation.
- Buyer's agents are expected to possess superior skill and knowledge in real estate matters and must utilize reasonable care and diligence in representing their clients.
- Agents must safeguard all money and property entrusted to them by their clients.
- Buyer’s agents help clients understand the purchase process, explaining contracts, mortgages, pre-approvals, and closings.
- They review closing costs, explain earnest money deposits, escrow, and default.
- Agents conduct research, generate comparable data, and review sales contracts and addenda.
- They assist with offer presentation, counteroffer negotiations, contract ratification, home inspections, and option selections on new homes.
- Agents guide buyers through the entire process, from mortgage pre-approval to closing, ensuring loan progression, handling title and survey issues, and addressing delays.
- They review homeowners association documents, schedule contractors, and facilitate walk-through inspections.
- Buyer’s agents ensure homeowner's insurance is in place, facilitate utility transfers, and guide clients through the closing process.
- They act as an impartial advisor, helping clients make informed decisions and avoiding emotional impulses.
- Buyer’s agents serve as valuable resources, connecting clients with reliable mortgage brokers, home inspectors, attorneys, and other necessary professionals.
Benefits of Using a Buyer's Agent
- Buyer's agents possess deep understanding of the local real estate market, enabling them to identify properties matching client needs and affordability.
- They navigate the complex buying process, educating clients and explaining legal and real estate terminology.
- Buyer's agents provide guidance and expertise in property viewing, offer negotiation, and contract review.
- They act as client advocates, ensuring their interests are protected and securing the best possible purchase price.
- They facilitate a seamless transaction, connecting clients with appropriate professionals, managing paperwork, and resolving any issues that may arise.
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Description
Test your knowledge on the essential duties and responsibilities of a buyer's agent in real estate transactions. This quiz covers loyalty, confidentiality, disclosure, and the overall process of representing buyers. Perfect for those looking to understand the intricacies of real estate representation.
