PSI Virginia Real Estate Practice Exam

What is required in a limited service agreement?

1. A detailed listing of all possible services

2. A list of standard agent duties not provided

3. Permission to represent multiple clients

4. Unlimited brokerage services

The correct answer is: A list of standard agent duties not provided

In a limited service agreement, the key component is a clear outline of what services the agent will not be providing, which corresponds directly to the understanding between the client and the agent. By specifying the standard duties that the agent will not cover, clients gain a clear picture of the level of service they can expect and what they may need to handle independently. This clarity helps prevent misunderstandings about the responsibilities of both parties. Providing a detailed list of all possible services is not practical or necessary in a limited service agreement, as the focus is on what is omitted rather than an exhaustive list of potential offerings. Also, while permission to represent multiple clients may be relevant in some contexts, it does not specifically relate to the essential aspects of limited service agreements, which prioritize transparency about the services rendered. Additionally, offering unlimited brokerage services contradicts the very nature of this type of agreement, which is characterized by limitations on the services provided.