Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the North Carolina Real Estate Broker Exam involving confidentiality and material facts and due diligence practice. Which statement is the best answer? (Item 96)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. The issue can be ignored if the parties want to close quickly.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Protect confidential client information unless disclosure is authorized or required in a way that fits North Carolina exam practice.
Correct Answer
D. Protect confidential client information unless disclosure is authorized or required in a way that fits North Carolina exam practice.
Explanation
The correct answer is D because confidentiality requires candidates to protect confidential client information unless disclosure is authorized or required. 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: hard
- Domain: Agency and License Law
- Objective: confidentiality