Agency and License Law Practice Question
Question
A property manager asks how a rule affects a rental property for the Michigan Real Estate Salesperson Exam involving confidentiality and seller disclosure practice. What should the licensee understand? (Item 78)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. Protect confidential client information unless disclosure is authorized or required in a way that fits Michigan exam practice.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
B. Protect confidential client information unless disclosure is authorized or required in a way that fits Michigan exam practice.
Explanation
The correct answer is B 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: medium
- Domain: Agency and License Law
- Objective: confidentiality