What does offering a free CMA to a potential client exemplify?

Prepare for the TREC Law of Agency Exam. Study with multiple-choice questions and detailed explanations. Get confident for your test!

Offering a free Comparative Market Analysis (CMA) to a potential client exemplifies gratuitous agency. In this context, gratuitous agency refers to a situation where an agent provides services without expecting a fee in return. By offering a free CMA, the agent is acting in a capacity that demonstrates goodwill and a desire to build a relationship, rather than simply seeking immediate compensation.

This practice can serve to establish trust and credibility with potential clients, showcasing the agent’s expertise and knowledge of the market, which can lead to future paid engagements. In essence, the act of giving a valuable service without charge can be seen as a strategy to attract clients by demonstrating the agent’s commitment to serving their needs even before a formal agreement is made.

This approach differs from the other options, as it is more about the nature of the relationship between the agent and the potential client than merely serving professional obligations or contractual agreements.

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