License Law and Agency Practice Question
Question
A transaction coordinator flags a compliance question in a New York real estate transaction involving seller representation. Which statement is most accurate for exam purposes? (Item 64)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. The requirement matters only if the buyer uses lender financing.
- C. The salesperson may handle the matter independently without broker involvement when compensation is expected.
- D. Apply fiduciary duties owed to a seller-client under a listing relationship.
Correct Answer
D. Apply fiduciary duties owed to a seller-client under a listing relationship.
Explanation
The correct answer is D because seller representation requires candidates to apply fiduciary duties owed to a seller-client under a listing relationship. 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: hard
- Domain: License Law and Agency
- Objective: seller representation