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 fiduciary disclosure and broker-salesperson supervision. What should the licensee understand? (Item 23)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. The requirement matters only when the buyer obtains institutional financing.
- C. Tell the client material information relevant to the representation in a way that fits Massachusetts exam practice.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
C. Tell the client material information relevant to the representation in a way that fits Massachusetts exam practice.
Explanation
The correct answer is C because fiduciary disclosure requires candidates to tell the client material information relevant to the representation. 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: fiduciary disclosure