Agency and License Law Practice Question
Question
A closing coordinator flags an issue before settlement for the Pennsylvania Real Estate Salesperson Exam involving dual agency or limited representation and consumer notice concepts. Which response best applies the rule? (Item 135)
Answer choices
- A. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- B. A verbal understanding always replaces a written real estate requirement.
- C. Recognize consent and neutrality duties when one brokerage is involved with both sides in a way that fits Pennsylvania exam practice.
- D. The safest practice is to avoid written documentation so fewer questions are raised later.
Correct Answer
C. Recognize consent and neutrality duties when one brokerage is involved with both sides in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is C because dual agency or limited representation requires candidates to recognize consent and neutrality duties when one brokerage is involved with both sides. 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: dual agency or limited representation