Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Virginia Real Estate Salesperson Exam involving confidentiality and Virginia Real Estate Board. Which answer best reduces risk? (Item 114)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. Protect confidential client information unless disclosure is authorized or required in a way that fits Virginia exam practice.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
B. Protect confidential client information unless disclosure is authorized or required in a way that fits Virginia exam practice.
Explanation
The correct answer is B because confidentiality requires candidates to protect confidential client information unless disclosure is authorized or required. The Virginia 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: confidentiality