Agency and License Law Practice Question
Question
An agent compares two similar exam concepts for the North Carolina Real Estate Broker Exam involving fiduciary disclosure and material facts and due diligence practice. Which statement is most accurate for exam purposes? (Item 95)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. The party who complains first automatically receives the remedy requested.
- C. Tell the client material information relevant to the representation in a way that fits North Carolina exam practice.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
C. Tell the client material information relevant to the representation in a way that fits North Carolina exam practice.
Explanation
The correct answer is C because fiduciary disclosure requires candidates to tell the client material information relevant to the representation. 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: fiduciary disclosure