Agency and License Law Practice Question
Question
A property manager asks how a rule affects a rental property for the New Jersey Real Estate Salesperson Exam involving agency disclosure and attorney review awareness. What should the licensee understand? (Item 26)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. Provide agency relationship disclosures when required by state practice in a way that fits New Jersey exam practice.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
B. Provide agency relationship disclosures when required by state practice in a way that fits New Jersey exam practice.
Explanation
The correct answer is B because agency disclosure requires candidates to provide agency relationship disclosures when required by state practice. 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: agency disclosure