Affiliate Broker Tennessee (TN PSI) National Practice Exam `

What action should you take if your client refuses necessary environmental tests for a property?

1. Proceed without testing

2. Insist the tests be done

3. Keep records of your recommendations and client's response

4. Advise them to consult another broker

The correct answer is: Keep records of your recommendations and client's response

Maintaining a thorough record of your recommendations regarding necessary environmental tests, alongside the client's refusal to proceed with them, is crucial for several reasons. First, it protects you as a broker by documenting that you advised the client on important issues that could affect the property's value and the health of its inhabitants. This is essential in case future claims or disputes arise, as it shows you fulfilled your duty to inform the client. Moreover, having a detailed record can demonstrate that you acted responsibly and ethically in your professional capacity, which is important in real estate transactions. If the client later experiences issues related to environmental factors, the documentation can help clarify that you advised against proceeding without testing. Taking action based on another choice, such as proceeding without testing or insisting on tests against the client's wishes, could lead to legal implications, disputes, or damage to the broker-client relationship. Advising the client to consult another broker could also sever your relationship instead of maintaining the professional guidance you are obligated to provide. Therefore, keeping comprehensive records of your communications is the most prudent course of action when faced with a client's refusal of necessary procedures.