Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the South Carolina Real Estate Salesperson Exam involving agency disclosure and state disclosure practice. Which statement is the best answer? (Item 44)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. The issue can be ignored if the parties want to close quickly.
- D. Provide agency relationship disclosures when required by state practice in a way that fits South Carolina exam practice.
Correct Answer
D. Provide agency relationship disclosures when required by state practice in a way that fits South Carolina exam practice.
Explanation
The correct answer is D because agency disclosure requires candidates to provide agency relationship disclosures when required by state practice. The South Carolina 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: hard
- Domain: Agency and License Law
- Objective: agency disclosure