Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Ohio Real Estate Salesperson Exam involving fiduciary loyalty and Ohio Division of Real Estate. Which statement is most accurate for exam purposes? (Item 58)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. Put the client’s interests ahead of the licensee’s personal interest in a way that fits Ohio exam practice.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
B. Put the client’s interests ahead of the licensee’s personal interest in a way that fits Ohio 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 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: fiduciary loyalty