Agency and License Law Practice Question
Question
An agent compares two similar exam concepts for the Indiana Real Estate Broker Exam involving fiduciary loyalty and broker affiliation and supervision. Which answer best reduces risk? (Item 22)
Answer choices
- A. The party who complains first automatically receives the remedy requested.
- B. Put the client’s interests ahead of the licensee’s personal interest in a way that fits Indiana exam practice.
- C. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- D. The client’s preference eliminates the need to disclose known material facts.
Correct Answer
B. Put the client’s interests ahead of the licensee’s personal interest in a way that fits Indiana exam practice.
Explanation
The correct answer is B because fiduciary loyalty requires candidates to put the client’s interests ahead of the licensee’s personal interest. 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: medium
- Domain: Agency and License Law
- Objective: fiduciary loyalty