Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the Washington Real Estate Broker Exam involving confidentiality and agency law pamphlet concepts. What should the licensee understand? (Item 78)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. Protect confidential client information unless disclosure is authorized or required in a way that fits Washington exam practice.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
B. Protect confidential client information unless disclosure is authorized or required in a way that fits Washington exam practice.
Explanation
The correct answer is B because confidentiality requires candidates to protect confidential client information unless disclosure is authorized or required. 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: confidentiality