Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Arizona Real Estate Salesperson Exam involving dual agency or limited representation and desert-region water and environmental awareness. Which statement is most accurate for exam purposes? (Item 153)
Answer choices
- A. Recognize consent and neutrality duties when one brokerage is involved with both sides in a way that fits Arizona exam practice.
- B. The requirement matters only when the buyer obtains institutional financing.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
A. Recognize consent and neutrality duties when one brokerage is involved with both sides in a way that fits Arizona exam practice.
Explanation
The correct answer is A because dual agency or limited representation requires candidates to recognize consent and neutrality duties when one brokerage is involved with both sides. 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: dual agency or limited representation