Agency and License Law Practice Question
Question
A closing coordinator flags an issue before settlement for the New Jersey Real Estate Salesperson Exam involving dual agency or limited representation and attorney review awareness. Which answer best reduces risk? (Item 27)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. The party who complains first automatically receives the remedy requested.
- C. Recognize consent and neutrality duties when one brokerage is involved with both sides in a way that fits New Jersey exam practice.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
C. Recognize consent and neutrality duties when one brokerage is involved with both sides in a way that fits New Jersey exam practice.
Explanation
The correct answer is C because dual agency or limited representation requires candidates to recognize consent and neutrality duties when one brokerage is involved with both sides. 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: dual agency or limited representation