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 agency disclosure and agency and trust-money compliance. Which statement is the best answer? (Item 44)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. Provide agency relationship disclosures when required by state practice in a way that fits Michigan exam practice.
Correct Answer
D. Provide agency relationship disclosures when required by state practice in a way that fits Michigan exam practice.
Explanation
The correct answer is D because agency disclosure requires candidates to provide agency relationship disclosures when required by state practice. 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: agency disclosure