Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Michigan Real Estate Salesperson Exam involving confidentiality and agency and trust-money compliance. Which answer best reduces risk? (Item 204)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. Protect confidential client information unless disclosure is authorized or required in a way that fits Michigan exam practice.
Correct Answer
D. Protect confidential client information unless disclosure is authorized or required in a way that fits Michigan exam practice.
Explanation
The correct answer is D because confidentiality requires candidates to protect confidential client information unless disclosure is authorized or required. The Michigan 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: confidentiality