License Law and Brokerage Relationships Practice Question

Question

A buyer and seller disagree about a closing issue in a Florida real estate transaction involving agency disclosure. Which answer best reduces transaction risk? (Item 307)

Answer choices

  1. A. The party who complains first automatically receives the legal remedy requested.
  2. B. Escrow automatically assumes all brokerage disclosure and agency duties.
  3. C. Identify when written disclosures are needed for relationship changes or no-brokerage scenarios.
  4. D. The client’s preference eliminates the need to disclose known material facts.

Correct Answer

C. Identify when written disclosures are needed for relationship changes or no-brokerage scenarios.

Explanation

The correct answer is C because agency disclosure requires candidates to identify when written disclosures are needed for relationship changes or no-brokerage scenarios. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Florida exam practice.

Question details

  • Difficulty: medium
  • Domain: License Law and Brokerage Relationships
  • Objective: agency disclosure

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