When a Rhode Island licensee discovers a material defect in a property, they are required to:
Correct Answer
B) Disclose it to all parties in the transaction
Under Rhode Island law, a licensee who discovers a material defect must disclose it to all parties in the transaction regardless of which party the licensee represents. This duty of disclosure overrides any duty of confidentiality owed to a client.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Agency Question
Background Knowledge for Agency
Real World Application in Agency
Common Mistakes to Avoid on Agency Questions
Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
More Agency Questions
For the Wyoming salesperson state portion, the membership of the Wyoming Real Estate Commission is tested. Which statement is correct?
A Wyoming licensee is reviewing a Commission appointment is reviewed for licensee-experience requirements. What is the best answer?
A West Virginia salesperson is asked about a WV licensee fails to disclose on the Commission agency relationship form whether the licensee represents the seller, buyer, or both. What is the best answer?
In West Virginia, a WV licensee fails to disclose on the Commission agency relationship form whether the licensee represents the seller, buyer, or both. Which statement is correct?
In Vermont, a licensee owes fiduciary duties to a client. Which statement is correct?
- → A Vermont licensee is asked about a designated agency firm appoints separate agents for buyer and seller. What is the best answer?
- → In Vermont, a licensee has substantial contact with an unrepresented person before a showing. Which statement is correct?
- → In Vermont, a firm has not elected designated agency. Which statement is correct?
- → In Vermont, a designated agency firm appoints separate agents for buyer and seller. Which statement is correct?
- → A Vermont licensee is asked about a licensee has substantial contact with an unrepresented person before a showing. What is the best answer?
- → In Vermont, a seller receives another offer before closing. Which statement is correct?
- → In Vermont, a designated agency firm appoints or changes a designated agent. Which statement is correct?
- → A Vermont licensee is asked about a firm has not elected designated agency. What is the best answer?
- → In Vermont, a brokerage hosts an open house for unrepresented visitors. Which statement is correct?
- → In Vermont, a licensee buys or sells property on the licensee's own account. Which statement is correct?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
Real Estate Exam Practice Questions by Topic (2026): Free Sets for Contracts, Agency, Financing
Get topic-based real estate exam practice sets and a simple sequence to move from learning to timed mocks.
Real Estate Exam Topics (2026): High-Yield Areas + Common Traps (Contracts, Agency, Financing, Fair Housing)
Learn the highest-frequency real estate exam topics and the traps that cause most wrong answers—plus how to study them.
Real Estate Exam Agency & Fiduciary Duties (2026): Scenarios + Practice Questions
Master agency relationships and fiduciary duties using scenario patterns and practice questions built for exam wording.