If a broker is a partner in a title company, what should they advise a buyer about title insurance?

Study for the New Mexico Real Estate Exam. Use flashcards and multiple-choice questions, each with hints and explanations. Prepare effectively for your exam!

In the given scenario, advising a buyer to seek legal advice is the most appropriate action because it prioritizes the buyer's best interests and ensures they receive impartial guidance. Title insurance can be a complex topic, involving various legal implications and requirements that a buyer may not fully understand. By recommending that the buyer consult with a lawyer, the broker ensures that the buyer receives professional advice tailored to their specific situation, allowing them to make informed decisions.

It’s important for brokers to maintain transparency and avoid any conflicts of interest, especially when they have a financial interest in a title company. This approach helps protect the buyer and fosters trust in the broker-client relationship. Legal professionals can provide the necessary insights into the terms of the title insurance policy and how it relates to the buyer's particular transaction, something that a broker, even with a partnership in a title company, may not be fully equipped to offer without bias.

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