Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Pennsylvania Real Estate Salesperson Exam involving fiduciary loyalty and state agreement and disclosure practice. Which response best applies the rule? (Item 40)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. Put the client’s interests ahead of the licensee’s personal interest in a way that fits Pennsylvania exam practice.
Correct Answer
D. Put the client’s interests ahead of the licensee’s personal interest in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is D because fiduciary loyalty requires candidates to put the client’s interests ahead of the licensee’s personal interest. 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: fiduciary loyalty