Agency and License Law Practice Question
Question
A closing coordinator flags an issue before settlement for the North Carolina Real Estate Broker Exam involving dual agency or limited representation and North Carolina Real Estate Commission. Which statement is most accurate for exam purposes? (Item 63)
Answer choices
- A. The party who complains first automatically receives the remedy requested.
- B. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- C. Recognize consent and neutrality duties when one brokerage is involved with both sides in a way that fits North Carolina exam practice.
- D. The client’s preference eliminates the need to disclose known material facts.
Correct Answer
C. 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 C 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: medium
- Domain: Agency and License Law
- Objective: dual agency or limited representation