Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the Utah Real Estate Sales Agent Exam involving fiduciary loyalty and Utah Division of Real Estate. Which statement is the best answer? (Item 4)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. Put the client’s interests ahead of the licensee’s personal interest in a way that fits Utah exam practice.
Correct Answer
D. Put the client’s interests ahead of the licensee’s personal interest in a way that fits Utah exam practice.
Explanation
The correct answer is D because fiduciary loyalty requires candidates to put the client’s interests ahead of the licensee’s personal interest. 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: fiduciary loyalty