NAR Client Representation & Customer Service 2

Question 1

A buyer's agent discovers the seller has not disclosed a known roof leak. What is the agent's primary obligation?

Accepted Answer

Disclose the known defect to the buyer client

Answer

An agent must disclose all known material defects to their buyer client regardless of the seller's disclosure failures.

Question 2

Under NAR's Code of Ethics, a REALTOR® acting as a buyer's representative must place whose interests first?

Accepted Answer

The buyer client

Answer

Article 1 of the Code of Ethics requires REALTORS® to protect and promote their client's interests above all others.

Question 3

What distinguishes a 'client' from a 'customer' in a real estate transaction?

Accepted Answer

A client has signed an exclusive agreement and is owed fiduciary duties

Answer

A client has an agency relationship with the broker, triggering fiduciary duties, while a customer receives only non-agency assistance.

Question 4

An agent represents a seller and a buyer in the same transaction without disclosure. This is an example of:

Accepted Answer

Undisclosed dual agency

Answer

Representing both parties without informed written consent constitutes undisclosed dual agency, which violates NAR's Code of Ethics.

Question 5

When must a listing agent provide the seller with a net sheet estimating proceeds?

Accepted Answer

Before or at the time of listing to help the seller make an informed decision

Answer

Providing an estimated net sheet before listing helps the seller understand their financial outcome, fulfilling the agent's duty of disclosure.

(NAR) National Association of Realtors Certification Practice Test