Agency and License Law Practice Question
Question
A property manager asks how a rule affects a rental property for the Pennsylvania Real Estate Salesperson Exam involving confidentiality and state agreement and disclosure practice. Which answer best reduces risk? (Item 204)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. The requirement matters only when the buyer obtains institutional financing.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Protect confidential client information unless disclosure is authorized or required in a way that fits Pennsylvania exam practice.
Correct Answer
D. Protect confidential client information unless disclosure is authorized or required in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is D because confidentiality requires candidates to protect confidential client information unless disclosure is authorized or required. The Pennsylvania 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: hard
- Domain: Agency and License Law
- Objective: confidentiality