Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Washington Real Estate Broker Exam involving agency disclosure and Washington broker licensing structure. Which response best applies the rule? (Item 170)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. Provide agency relationship disclosures when required by state practice in a way that fits Washington exam practice.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
B. Provide agency relationship disclosures when required by state practice in a way that fits Washington exam practice.
Explanation
The correct answer is B because agency disclosure requires candidates to provide agency relationship disclosures when required by state practice. The Washington 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