Agency and License Law Practice Question
Question
A salesperson notices a possible compliance problem for the Indiana Real Estate Broker Exam involving confidentiality and broker affiliation and supervision. What should the licensee understand? (Item 78)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. Protect confidential client information unless disclosure is authorized or required in a way that fits Indiana exam practice.
- C. The party who complains first automatically receives the remedy requested.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
B. Protect confidential client information unless disclosure is authorized or required in a way that fits Indiana exam practice.
Explanation
The correct answer is B 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: medium
- Domain: Agency and License Law
- Objective: confidentiality