Agency and License Law Practice Question
Question
A closing coordinator flags an issue before settlement for the North Carolina Real Estate Broker Exam involving fiduciary disclosure and provisional broker supervision. What should the licensee understand? (Item 23)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. The party who complains first automatically receives the remedy requested.
- C. Tell the client material information relevant to the representation in a way that fits North Carolina exam practice.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
C. Tell the client material information relevant to the representation in a way that fits North Carolina exam practice.
Explanation
The correct answer is C because fiduciary disclosure requires candidates to tell the client material information relevant to the representation. 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 disclosure