Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the South Carolina Real Estate Salesperson Exam involving agency disclosure and state disclosure practice. Which statement is most accurate for exam purposes? (Item 98)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. Provide agency relationship disclosures when required by state practice in a way that fits South Carolina exam practice.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
B. Provide agency relationship disclosures when required by state practice in a way that fits South Carolina exam practice.
Explanation
The correct answer is B 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: medium
- Domain: Agency and License Law
- Objective: agency disclosure