Maryland Home Improvement PSI Practice Exam

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Prepare for the Maryland Home Improvement Test. Study using flashcards and multiple-choice questions, each with hints and explanations. Get ready to excel on your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What would violate a real estate salesperson's agency duties to a client?

Disclosing the price the seller originally paid for the property.
Disclosing the highest price the buyer is willing to pay.
Preparing a competitive market analysis.
Identifying latent property defects.

The correct answer is: Disclosing the highest price the buyer is willing to pay.

Disclosing the highest price the buyer is willing to pay would violate a real estate salesperson's agency duties to a client because it breaches the obligation of confidentiality. Real estate agents have a fiduciary duty to safeguard their clients' confidential information, which includes the maximum price a buyer is willing to pay. Sharing this sensitive information could undermine the buyer's negotiating position and adversely affect their interests. In contrast, disclosing the price the seller originally paid, preparing a competitive market analysis, and identifying latent property defects all serve the purpose of transparency and providing necessary information for the clients to make informed decisions. These actions typically align with an agent's responsibilities to act in the best interests of their clients while fulfilling their obligations in a professional and ethical manner.