Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Pennsylvania Real Estate Salesperson Exam involving confidentiality and consumer notice concepts. What should the licensee understand? (Item 78)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. Protect confidential client information unless disclosure is authorized or required in a way that fits Pennsylvania 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. Protect confidential client information unless disclosure is authorized or required in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is B 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: medium
- Domain: Agency and License Law
- Objective: confidentiality