PSI Virginia Real Estate Practice Exam

According to the traditional agency duties, what does "C" in COALD stand for?

1. Confidentiality

2. Care

3. Cost

4. Control

The correct answer is: Care

In the context of agency duties outlined by the acronym COALD, the "C" stands for Care. This principle emphasizes the agent's responsibility to act with a high level of competence and diligence when handling a client's affairs. An agent must demonstrate expertise and perform tasks with the utmost care to protect the client's interests. The duty of Care includes being knowledgeable about the current market conditions, understanding the specifics of the property, and executing tasks such as negotiations and marketing effectively. This is essential in ensuring that the agent meets the standard of care expected in the real estate profession, ultimately leading to better outcomes for clients. While confidentiality, cost, and control are also relevant aspects in real estate transactions, they do not represent the "C" in the COALD acronym. Confidentiality relates to keeping a client's information private, cost typically refers to financial considerations in a transaction, and control involves managing the process. However, Care specifically highlights the agent's performance and diligence, which is crucial in upholding the fiduciary responsibilities associated with agency relationships.