Agency and License Law Practice Question
Question
A salesperson notices a possible compliance problem for the Indiana Real Estate Broker Exam involving agency disclosure and state agency and disclosure practice. Which statement is most accurate for exam purposes? (Item 98)
Answer choices
- A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- B. Provide agency relationship disclosures when required by state practice in a way that fits Indiana exam practice.
- C. The client’s preference eliminates the need to disclose known material facts.
- D. The party who complains first automatically receives the remedy requested.
Correct Answer
B. Provide agency relationship disclosures when required by state practice in a way that fits Indiana exam practice.
Explanation
The correct answer is B because agency disclosure requires candidates to provide agency relationship disclosures when required by state practice. 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: agency disclosure