Agency and License Law Practice Question
Question
A license applicant is reviewing a practice scenario for the Michigan Real Estate Salesperson Exam involving dual agency or limited representation and agency and trust-money compliance. Which statement is most accurate for exam purposes? (Item 153)
Answer choices
- A. Recognize consent and neutrality duties when one brokerage is involved with both sides in a way that fits Michigan exam practice.
- B. The party who complains first automatically receives the remedy requested.
- C. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- D. The client’s preference eliminates the need to disclose known material facts.
Correct Answer
A. Recognize consent and neutrality duties when one brokerage is involved with both sides in a way that fits Michigan exam practice.
Explanation
The correct answer is A because dual agency or limited representation requires candidates to recognize consent and neutrality duties when one brokerage is involved with both sides. 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: easy
- Domain: Agency and License Law
- Objective: dual agency or limited representation