Terms and Definitions
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Reasonable care and diligence

An agent is obligated to use reasonable care and diligence in pursuing the principal’s affairs. The standard of
care expected of a real estate broker representing a seller or buyer is that of a competent real estate
professional. By reason of his license, a real estate broker is deemed to have skill and expertise in real estate
matters superior to that of the average person. As an agent representing others in their real estate dealings, a
broker or salesperson is under a duty to use his superior skill and knowledge while pursuing his principal’s
affairs. This duty includes an obligation to affirmatively discover facts relating to his principal’s affairs that a
reasonable and prudent real estate broker would be expected to investigate. Simply put, this is the same duty
any professional, such as a doctor or lawyer, owes to his patient or client

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