Question

One way to demonstrate reasonable skill and care is by acting within the scope of your duties. When working an open house for one of her listings, Keira meets a young couple. They're not looking to purchase anything right now but are trying to get a sense of how much house their money will buy in different areas of town. Keira tells them about a few listings she knows about and the listing prices compared to house size and amenities. They also ask about financing a new home, the best way to save money for a down payment when they have other debt, and how much they should save. She tells them that in order to receive the best terms, they should have about 20% of the sale price saved for a down payment and that other debt will factor into the ability to obtain financing, so they should pay off anything they can. She also tells them that fixed-rate mortgages are better than adjustable-rate mortgages. Was Keira's discussion with the couple within the scope of her expertise?

a. Yes. Since the couple are not clients, she has more flexibility in what she can tell them.
b. No. She shouldn't have told the couple about other properties around town.
c. No. She shouldn't have given the couple advice related to specific mortgage types.
d. Yes. It's important to provide as much information as possible to potential buyers.

Answer 1

Keira's discussion with the couple was not within the scope of her expertise as a real estate agent.

Step-by-step explanation:

No, Keira's discussion with the couple was not within the scope of her expertise. While it is generally acceptable to provide general information about the real estate market and financing options, Keira crossed the line by discussing specific listings and giving advice related to specific mortgage types. As a real estate agent, Keira should only provide information and advice that falls within her area of expertise and knowledge.