Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the North Carolina Real Estate Broker Exam involving confidentiality and provisional broker supervision. What should the licensee understand? (Item 78)
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