New Jersey Real Estate Practice Exam Free Practice Question
A seller talks with three different agents to establish a probable selling price for a home. The first agent's market analysis suggests a price around $79,900. The second agent's market analysis suggests approximately $81,500. The third agent doesn't research any comparables but simply lists the home at $91,500. Three months later the property sells for $76,900. What duty to the principal has the third agent breached?
Correct Answer: D
Rationale: The third agent breached the duty of reasonable care by failing to conduct a proper market analysis before setting a listing price. This neglect likely led to an inflated price that did not reflect the home's true market value, ultimately resulting in a lower sale price.
Option A, loyalty, pertains to acting in the principal's best interests, which is not the primary issue here. Option B, disclosure, involves informing the principal of pertinent information, which was not the main failure in this scenario. Option C, accounting, relates to handling funds properly, which is irrelevant in this context.
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