Fair Housing, Practice, and Disclosures Practice Question
Question
An agent compares two similar exam concepts for the Arizona Real Estate Salesperson Exam involving unauthorized legal advice and Arizona Department of Real Estate. Which response best applies the rule? (Item 112)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. The issue can be ignored if the parties want to close quickly.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Avoid drafting legal rights or giving legal opinions beyond license authority in a way that fits Arizona exam practice.
Correct Answer
D. Avoid drafting legal rights or giving legal opinions beyond license authority in a way that fits Arizona exam practice.
Explanation
The correct answer is D because unauthorized legal advice requires candidates to avoid drafting legal rights or giving legal opinions beyond license authority. 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: hard
- Domain: Fair Housing, Practice, and Disclosures
- Objective: unauthorized legal advice