Agency and License Law Practice Question
Question
A supervising broker is reviewing a transaction file for the Virginia Real Estate Salesperson Exam involving agency disclosure and agency disclosure and brokerage relationship duties. What should the licensee understand? (Item 26)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Provide agency relationship disclosures when required by state practice in a way that fits Virginia exam practice.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. The issue can be ignored if the parties want to close quickly.
Correct Answer
B. Provide agency relationship disclosures when required by state practice in a way that fits Virginia exam practice.
Explanation
The correct answer is B because agency disclosure requires candidates to provide agency relationship disclosures when required by state practice. 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: agency disclosure