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 fiduciary loyalty and provisional broker supervision. Which answer best reduces risk? (Item 22)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. Put the client’s interests ahead of the licensee’s personal interest in a way that fits North Carolina exam practice.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
B. Put the client’s interests ahead of the licensee’s personal interest in a way that fits North Carolina exam practice.
Explanation
The correct answer is B because fiduciary loyalty requires candidates to put the client’s interests ahead of the licensee’s personal interest. 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 loyalty