Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the Georgia Real Estate Salesperson Exam involving dual agency or limited representation and Georgia Real Estate Commission. What should the licensee understand? (Item 171)
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 Georgia 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 Georgia 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 Georgia 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