Georgia Real Estate Salesperson Exam — All Questions
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An agent's duty to promptly account for and deliver all money and property belonging to the client reflects which fiduciary duty?
- a.Loyalty
- b.Obedience
- c.Accounting✓
- d.Confidentiality
The duty of accounting requires the agent to properly handle, report, and promptly deliver all funds and documents belonging to the client. Trust funds must be kept separate and never commingled.
A licensee who assists a buyer in a transaction but represents the seller is acting toward the buyer as:
- a.A customer, owing honesty and fairness but not full representation✓
- b.A client with full fiduciary duties
- c.A dual agent
- d.A designated agent
A person the agent does not represent is a customer, owed honesty, fairness, and disclosure of material facts, but not full fiduciary representation. Fiduciary duties are reserved for the client (principal).
An agent tells a buyer, 'This is the best home in the whole city.' This statement is generally considered:
- a.Fraud
- b.Puffing✓
- c.Misrepresentation
- d.A breach of fiduciary duty
Puffing is an exaggerated opinion or sales talk that a reasonable buyer would not take as a statement of fact. It is legal, unlike misrepresentation or fraud, which involve false statements of material fact.