Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the Massachusetts Real Estate Salesperson Exam involving fiduciary disclosure and broker-salesperson supervision. Which statement is most accurate for exam purposes? (Item 185)
Answer choices
- A. Tell the client material information relevant to the representation in a way that fits Massachusetts exam practice.
- B. The issue can be ignored if the parties want to close quickly.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
A. Tell the client material information relevant to the representation in a way that fits Massachusetts exam practice.
Explanation
The correct answer is A 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: easy
- Domain: Agency and License Law
- Objective: fiduciary disclosure