Oregon 30-Hour Real Estate Law Practice Test

The duty of reasonable skill and care assumes that agents can provide expert advice in which area?

1. Law

2. Real estate

3. Finance

4. Marketing

The correct answer is: Real estate

The duty of reasonable skill and care in real estate transactions emphasizes that agents are expected to possess a certain level of expertise in the field of real estate. This encompasses a broad understanding of market dynamics, property values, neighborhood trends, and various complexities of real estate contracts and transactions. Real estate agents are often relied upon by clients for guidance in making informed decisions about buying and selling properties. They must demonstrate professionalism and knowledge that reflects their understanding of the specifics inherent to the real estate market. This includes the ability to evaluate properties accurately, navigate the nuances of real estate laws, and comprehend the implications of different types of transactions. While knowledge in law, finance, and marketing can benefit a real estate agent's practice and serve clients effectively, the core duty of reasonable skill and care specifically ties to the agent's expertise within the realm of real estate itself. This expertise is what allows agents to fulfill their legal and ethical obligations toward their clients, ensuring they provide the necessary advice that aligns with industry standards. Therefore, the correct answer correctly identifies that the duty of reasonable skill and care is fundamentally connected to expertise in real estate.