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 Pennsylvania Real Estate Commission. What should the licensee understand? (Item 168)
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