Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the Arizona Real Estate Salesperson Exam involving license-required activity and Arizona subdivision and disclosure practice. Which statement is the best answer? (Item 181)
Answer choices
- A. Identify acts requiring a license when performed for compensation in a way that fits Arizona exam practice.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
A. Identify acts requiring a license when performed for compensation in a way that fits Arizona exam practice.
Explanation
The correct answer is A because license-required activity requires candidates to identify acts requiring a license when performed for compensation. The Arizona 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: easy
- Domain: Agency and License Law
- Objective: license-required activity