Question

Which of the following is a licensee who lists property required to do under the minimum services provision of RECAD?

1) provide legal advice
2) seek additional offers after one has been accepted
3) hire a home inspector
4) assist in negotiating offers, counteroffers, and addenda

Answer 1

Under the minimum services provision of RECAD, a licensee who lists a property is typically required to assist in negotiating offers, counteroffers, and addenda, rather than providing legal advice, seeking additional offers after an acceptance, or hiring a home inspector.

Step-by-step explanation:

The subject of this question relates to the Real Estate Consumer Agency Disclosure (RECAD) and the responsibilities of a real estate agent who is acting as a licensee in the state of Alabama. Specifically, it refers to the minimum services provision, which is a requirement that licensees must fulfill when they list a property for sale or lease. Among the options provided:

• Providing legal advice is typically not required and often outside the scope of a real estate agent's responsibilities, as they are not attorneys.
• Seeking additional offers after one has been accepted is not commonly a requirement under minimum service provisions, as this depends on the terms agreed upon in the initial contract.
• Hiring a home inspector is not a requirement for the agent; it's typically the responsibility of the buyer or based on an agreement between the buyer and seller.
• Assisting in negotiating offers, counteroffers, and addenda is often part of the minimum services required under RECAD. This involves advising the client during the negotiation process to help them make informed decisions about the transaction.

Therefore, the correct response is that the licensee who lists the property must assist in negotiating offers, counteroffers, and addenda under the minimum services provision of RECAD.

Answer 2

Under RECAD, a licensee is required to assist in negotiating offers, counteroffers, and addenda as part of their minimum services, and is not required to provide legal advice, hire a home inspector, or seek additional offers after one has been accepted.

Step-by-step explanation:

Under the Real Estate Consumer Agency and Disclosure Act (RECAD), a licensee who lists a property is mandated to fulfill certain minimum services for their client. Among these required services, providing legal advice is not one of them; in fact, offering legal advice would be outside the scope of a real estate agent's professional responsibilities unless they are also licensed attorneys. Similarly, hiring a home inspector is not a mandated service under RECAD; it is typically the responsibility of the buyer to arrange for an inspection. Seeking additional offers after one has been accepted is not required either and can be subject to the terms of the specific contract between buyers and sellers.

The correct answer to the original question is that a licensee must assist in negotiating offers, counteroffers, and addenda as part of their minimum services. This is an essential role of the real estate agent to advocate and facilitate on behalf of their client for the best possible terms during the transaction process.