Agency and License Law Practice Question
Question
An agent compares two similar exam concepts for the Massachusetts Real Estate Salesperson Exam involving agency disclosure and Massachusetts Board of Registration. What should the licensee understand? (Item 116)
Answer choices
- A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- B. The client’s preference eliminates the need to disclose known material facts.
- C. The party who complains first automatically receives the remedy requested.
- D. Provide agency relationship disclosures when required by state practice in a way that fits Massachusetts exam practice.
Correct Answer
D. Provide agency relationship disclosures when required by state practice in a way that fits Massachusetts exam practice.
Explanation
The correct answer is D because agency disclosure requires candidates to provide agency relationship disclosures when required by state practice. 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: hard
- Domain: Agency and License Law
- Objective: agency disclosure