Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Utah Real Estate Sales Agent Exam involving agency disclosure and sales agent brokerage affiliation. What should the licensee understand? (Item 26)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. Provide agency relationship disclosures when required by state practice in a way that fits Utah exam practice.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
B. Provide agency relationship disclosures when required by state practice in a way that fits Utah exam practice.
Explanation
The correct answer is B 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: medium
- Domain: Agency and License Law
- Objective: agency disclosure