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 North Carolina Real Estate Commission. Which statement is the best answer? (Item 6)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Protect confidential client information unless disclosure is authorized or required in a way that fits North Carolina exam practice.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
B. Protect confidential client information unless disclosure is authorized or required in a way that fits North Carolina exam practice.
Explanation
The correct answer is B 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: medium
- Domain: Agency and License Law
- Objective: confidentiality