Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the Ohio Real Estate Salesperson Exam involving agency disclosure and agency disclosure and brokerage relationship practice. Which statement is the best answer? (Item 134)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. Provide agency relationship disclosures when required by state practice in a way that fits Ohio exam practice.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
B. Provide agency relationship disclosures when required by state practice in a way that fits Ohio exam practice.
Explanation
The correct answer is B because agency disclosure requires candidates to provide agency relationship disclosures when required by state practice. The Ohio 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: agency disclosure