Agency and License Law Practice Question
Question
A supervising broker is reviewing a transaction file for the New Jersey Real Estate Salesperson Exam involving fiduciary loyalty and New Jersey disclosure and consumer protection practice. Which statement is the best answer? (Item 94)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Put the client’s interests ahead of the licensee’s personal interest in a way that fits New Jersey exam practice.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
B. Put the client’s interests ahead of the licensee’s personal interest in a way that fits New Jersey exam practice.
Explanation
The correct answer is B because fiduciary loyalty requires candidates to put the client’s interests ahead of the licensee’s personal interest. The New Jersey 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 loyalty