Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Illinois Real Estate Broker Exam involving agency disclosure and state escrow and advertising compliance. Which answer best reduces risk? (Item 152)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. Provide agency relationship disclosures when required by state practice in a way that fits Illinois exam practice.
Correct Answer
D. Provide agency relationship disclosures when required by state practice in a way that fits Illinois exam practice.
Explanation
The correct answer is D because agency disclosure requires candidates to provide agency relationship disclosures when required by state practice. The Illinois 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: hard
- Domain: Agency and License Law
- Objective: agency disclosure