A licensee must ensure which of the following for a buyer client?

Study for the CAS 45-Hour Real Estate Principles Course Test. Utilize flashcards and multiple choice questions to prepare thoroughly. Each question is paired with hints and explanations. Get ready to excel in your exam!

The importance of due diligence in real estate transactions cannot be overstated, making it essential for a licensee to ensure that a buyer client understands this concept. Due diligence refers to the research and analysis that a buyer must undertake to make informed decisions regarding a property purchase. This includes investigating the property’s condition, title issues, zoning regulations, and market comparables. By guiding the buyer through this process, the licensee facilitates an understanding of potential risks and benefits associated with the property, ultimately helping the buyer make a sound investment.

While other considerations, such as financial preparedness, disclosure of prior offers, and awareness of market trends, are also important, the primary responsibility of the licensee is to ensure that the buyer is equipped to conduct thorough due diligence. Without this understanding, even financially prepared buyers may overlook critical factors that could adversely affect their decision-making process.

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