License Law and Agency Practice Question

Question

A buyer and seller disagree about a closing issue in a New York real estate transaction involving agency disclosure. Which response best applies the rule? (Item 75)

Answer choices

1. A. The licensee should avoid documenting the issue to reduce the chance of later questions.
2. B. A licensee may give legal conclusions instead of recommending qualified legal advice when the issue is uncertain.
3. C. Provide and explain required agency relationship disclosures in covered transactions.
4. D. A verbal understanding always replaces any written requirement in a real estate transaction.

Correct Answer

C. Provide and explain required agency relationship disclosures in covered transactions.

Explanation

The correct answer is C because agency disclosure requires candidates to provide and explain required agency relationship disclosures in covered transactions. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound New York exam practice.

Question details

• Difficulty: medium
• Domain: License Law and Agency
• Objective: agency disclosure

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