Agency and License Law Practice Question
Question
A supervising broker is reviewing a transaction file for the Arizona Real Estate Salesperson Exam involving dual agency or limited representation and Arizona subdivision and disclosure practice. Which answer best reduces risk? (Item 27)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. Recognize consent and neutrality duties when one brokerage is involved with both sides in a way that fits Arizona exam practice.
- D. The issue can be ignored if the parties want to close quickly.
Correct Answer
C. 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 C 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: medium
- Domain: Agency and License Law
- Objective: dual agency or limited representation