Agency and License Law Practice Question
Question
An agent compares two similar exam concepts for the North Carolina Real Estate Broker Exam involving dual agency or limited representation and material facts and due diligence practice. Which response best applies the rule? (Item 45)
Answer choices
- A. Recognize consent and neutrality duties when one brokerage is involved with both sides in a way that fits North Carolina exam practice.
- B. The safest practice is to avoid written documentation so fewer questions are raised later.
- C. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- D. A verbal understanding always replaces a written real estate requirement.
Correct Answer
A. Recognize consent and neutrality duties when one brokerage is involved with both sides in a way that fits North Carolina exam practice.
Explanation
The correct answer is A because dual agency or limited representation requires candidates to recognize consent and neutrality duties when one brokerage is involved with both sides. 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: easy
- Domain: Agency and License Law
- Objective: dual agency or limited representation