Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the Arizona Real Estate Salesperson Exam involving fiduciary disclosure and desert-region water and environmental awareness. Which statement is the best answer? (Item 41)
Answer choices
- A. Tell the client material information relevant to the representation in a way that fits Arizona exam practice.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
A. Tell the client material information relevant to the representation in a way that fits Arizona exam practice.
Explanation
The correct answer is A because fiduciary disclosure requires candidates to tell the client material information relevant to the representation. The Arizona reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: easy
- Domain: Agency and License Law
- Objective: fiduciary disclosure