Agency and License Law Practice Question
Question
A salesperson notices a possible compliance problem for the New Jersey Real Estate Salesperson Exam involving fiduciary disclosure and New Jersey disclosure and consumer protection practice. Which statement is most accurate for exam purposes? (Item 95)
Answer choices
- A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- B. The client’s preference eliminates the need to disclose known material facts.
- C. Tell the client material information relevant to the representation in a way that fits New Jersey exam practice.
- D. The party who complains first automatically receives the remedy requested.
Correct Answer
C. Tell the client material information relevant to the representation in a way that fits New Jersey exam practice.
Explanation
The correct answer is C because fiduciary disclosure requires candidates to tell the client material information relevant to the representation. 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 disclosure