Agency and License Law Practice Question
Question
A salesperson notices a possible compliance problem for the Pennsylvania Real Estate Salesperson Exam involving fiduciary disclosure and consumer notice concepts. What should the licensee understand? (Item 23)
Answer choices
- A. The safest practice is to avoid written documentation so fewer questions are raised later.
- B. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- C. Tell the client material information relevant to the representation in a way that fits Pennsylvania exam practice.
- D. A verbal understanding always replaces a written real estate requirement.
Correct Answer
C. Tell the client material information relevant to the representation in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is C because fiduciary disclosure requires candidates to tell the client material information relevant to the representation. 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: fiduciary disclosure