PSI Virginia Real Estate Practice Exam

Which of the following is one of the traditional agency duties?

1. Advocacy

2. Transparency

3. Disclosure

4. Negotiation

The correct answer is: Disclosure

The correct response highlights the duty of disclosure, which is a fundamental principle in real estate agency relationships. This duty requires an agent to inform their clients about all material facts that could influence the client's decision-making process. For instance, if there are any defects in a property or pertinent market conditions that could affect its value, the agent is obligated to disclose this information to the seller or buyer. This adherence to disclosure helps maintain trust and transparency between the agent and their client and ensures that clients can make well-informed decisions. Other duties in agency relationships, such as advocacy, transparency, and negotiation, do play significant roles but do not specifically align with the traditional duties outlined in real estate practices. While agents serve their clients' best interests (advocacy) and aim for clarity in communication (transparency), these are more overarching principles rather than traditional, defined duties. Negotiation is a process that agents engage in on behalf of their clients, but again, it doesn't encapsulate the defined legal responsibilities like disclosure does.