License Law and Agency Practice Question
Question
A buyer asks a licensee for an exam-focused explanation in a New York real estate transaction involving dual agency. Which statement is the best answer? (Item 150)
Answer choices
- A. The broker may mix client funds with business funds if the amount is small and later reconciled.
- B. Recognize that dual agency requires informed consent and careful neutrality within permitted limits.
- C. The issue can be ignored if both parties want the transaction to close quickly.
- D. The rule applies only to commercial property and never to residential property.
Correct Answer
B. Recognize that dual agency requires informed consent and careful neutrality within permitted limits.
Explanation
The correct answer is B because dual agency requires candidates to recognize that dual agency requires informed consent and careful neutrality within permitted limits. 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: dual agency