Agency and License Law Practice Question
Question
A property manager asks how a rule affects a rental property for the Massachusetts Real Estate Salesperson Exam involving dual agency or limited representation and Massachusetts Board of Registration. Which statement is most accurate for exam purposes? (Item 63)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Recognize consent and neutrality duties when one brokerage is involved with both sides in a way that fits Massachusetts exam practice.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
C. Recognize consent and neutrality duties when one brokerage is involved with both sides in a way that fits Massachusetts exam practice.
Explanation
The correct answer is C because dual agency or limited representation requires candidates to recognize consent and neutrality duties when one brokerage is involved with both sides. The Massachusetts 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: dual agency or limited representation