Question

Agent Paul lists a home for Greg. He was not sure about the market value in Greg's area and did not research. Consequently, he listed Greg's house under market price. Greg is now suing Agent Paul for damages. Which of the following common law agency duties did Agent Paul fail to uphold?

A) Duty of loyalty
B) Duty of competence
C) Duty of disclosure
D) Duty of accountability

Answer 1

Agent Paul failed to uphold the duty of competence by not researching the market value before listing Greg's house, breaching the expected level of skill and diligence in real estate practice (B).

Step-by-step explanation:

In the scenario where Agent Paul fails to research the market value in Greg's area and lists Greg's house under the market price, leading to a lawsuit for damages, Agent Paul has failed to uphold the duty of competence. This common law agency duty requires an agent to perform all duties with the skill, care, and diligence that is customary or appropriate for the profession.

By not adequately researching the market value, Agent Paul did not exhibit the necessary level of skill and diligence expected of a competent real estate agent, thus breaching his professional responsibility.