Agency and License Law Practice Question
Question
A license applicant is reviewing a practice scenario for the Michigan Real Estate Salesperson Exam involving fiduciary disclosure and seller disclosure practice. What should the licensee understand? (Item 23)
Answer choices
- A. A verbal understanding always replaces a written real estate requirement.
- B. The safest practice is to avoid written documentation so fewer questions are raised later.
- C. Tell the client material information relevant to the representation in a way that fits Michigan exam practice.
- D. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
Correct Answer
C. Tell the client material information relevant to the representation in a way that fits Michigan exam practice.
Explanation
The correct answer is C because fiduciary disclosure requires candidates to tell the client material information relevant to the representation. 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: fiduciary disclosure