Agency and License Law Practice Question
Question
A seller is preparing to list a home for the Indiana Real Estate Broker Exam involving confidentiality and state agency and disclosure practice. Which statement is the best answer? (Item 96)
Answer choices
- A. A verbal understanding always replaces a written real estate requirement.
- B. The safest practice is to avoid written documentation so fewer questions are raised later.
- C. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- D. Protect confidential client information unless disclosure is authorized or required in a way that fits Indiana exam practice.
Correct Answer
D. Protect confidential client information unless disclosure is authorized or required in a way that fits Indiana exam practice.
Explanation
The correct answer is D because confidentiality requires candidates to protect confidential client information unless disclosure is authorized or required. The Indiana 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: confidentiality