1. A real estate broker should educate clients to protect the client’s best interests and ensure a knowledgeable negotiating position. However, client education involves a certain amount of risk, because whatever information the broker (or salesperson in the firm) conveys must be accurate and reliable. With regard to managing the risk associated with client education, all of the following statements are true EXCEPT: a. Agents should refrain from educating clients about matters beyond their scope of authority. b. If a client makes a harmful decision because the agent did not provide the client with the appropriate information, the client might have grounds for a negligence charge. c. Depending on the market, the client’s negotiating position may be more powerful if the client "treads lightly" with regard to contractual demands. d. Agents should avoid discovery of facts, because the more facts an agent knows, the more facts the agent must disclose to the client; and the agent runs the risk of conveying inaccurate information.
d - The law of agency will inevitably require that the agent educate the client about material facts and about the art of negotiating to ensure a strong negotiating position. The idea that an agent can avoid discovery for fear that discovering facts will increase the burden of disclosure, and increase the agent’s obligation to educate the client is not correct. The duty of agency requires discovery; and the duty of disclosure requires that the agent educate the client about all known facts; or all facts the agent should have discovered.
