Agency and License Law Practice Question
Question
A property manager asks how a rule affects a rental property for the North Carolina Real Estate Broker Exam involving agency disclosure and North Carolina Real Estate Commission. Which answer best reduces risk? (Item 62)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. Provide agency relationship disclosures when required by state practice in a way that fits North Carolina exam practice.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
B. Provide agency relationship disclosures when required by state practice in a way that fits North Carolina exam practice.
Explanation
The correct answer is B because agency disclosure requires candidates to provide agency relationship disclosures when required by state practice. The North Carolina 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