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 fiduciary loyalty and consumer notice concepts. Which response best applies the rule? (Item 130)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Put the client’s interests ahead of the licensee’s personal interest in a way that fits Pennsylvania exam practice.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. The issue can be ignored if the parties want to close quickly.
Correct Answer
B. Put the client’s interests ahead of the licensee’s personal interest in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is B because fiduciary loyalty requires candidates to put the client’s interests ahead of the licensee’s personal interest. 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 loyalty