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 agency disclosure and Pennsylvania Real Estate Commission. Which response best applies the rule? (Item 170)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. Provide agency relationship disclosures when required by state practice in a way that fits Pennsylvania 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. Provide agency relationship disclosures when required by state practice in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is B because agency disclosure requires candidates to provide agency relationship disclosures when required by state practice. 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: agency disclosure