Contracts, Transfer, and Escrow Practice Question
Question
A salesperson is explaining a concept to a client involving listing agreement. Which statement best describes listing agreement? (Item 164)
Answer choices
- A. It is optional whenever both parties verbally agree to proceed.
- B. It allows a salesperson to act independently of the responsible broker.
- C. It shifts all responsibility to escrow and eliminates the broker’s duties.
- D. Recognize broker employment agreement terms and compensation concepts.
Correct Answer
D. Recognize broker employment agreement terms and compensation concepts.
Explanation
The correct answer is D because listing agreement requires candidates to recognize broker employment agreement terms and compensation concepts. The other options overstate the effect of custom, oral agreement, escrow, or independent salesperson action and do not reflect safe California exam practice.
Question details
- Difficulty: medium
- Domain: Contracts, Transfer, and Escrow
- Objective: listing agreement