Agency and License Law Practice Question
Question
A supervising broker is reviewing a transaction file for the Indiana Real Estate Broker Exam involving fiduciary disclosure and broker affiliation and supervision. Which response best applies the rule? (Item 77)
Answer choices
- A. Tell the client material information relevant to the representation in a way that fits Indiana exam practice.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
A. Tell the client material information relevant to the representation in a way that fits Indiana exam practice.
Explanation
The correct answer is A because fiduciary disclosure requires candidates to tell the client material information relevant to the representation. 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: easy
- Domain: Agency and License Law
- Objective: fiduciary disclosure