Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Utah Real Estate Sales Agent Exam involving agency disclosure and Utah Division of Real Estate. Which statement is most accurate for exam purposes? (Item 8)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. The requirement matters only when the buyer obtains institutional financing.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Provide agency relationship disclosures when required by state practice in a way that fits Utah exam practice.
Correct Answer
D. Provide agency relationship disclosures when required by state practice in a way that fits Utah exam practice.
Explanation
The correct answer is D because agency disclosure requires candidates to provide agency relationship disclosures when required by state practice. The Utah 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