Agency and License Law Practice Question
Question
A closing coordinator flags an issue before settlement for the Pennsylvania Real Estate Salesperson Exam involving fiduciary disclosure and state agreement and disclosure practice. Which statement is most accurate for exam purposes? (Item 95)
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