Contracts, Transfer, and Escrow Practice Question

Question

A license applicant is studying a California practice scenario involving exclusive right to sell. Which response best protects the client and keeps the transaction compliant? (Item 25)

Answer choices

1. A. Identify the listing type that generally earns commission regardless of who finds the buyer.
2. B. It is primarily a tax rule with no effect on brokerage practice.
3. C. It removes the need for written disclosure if the licensee believes the client already knows.
4. D. It can be ignored if the transaction is expected to close quickly.

Correct Answer

A. Identify the listing type that generally earns commission regardless of who finds the buyer.

Explanation

The correct answer is A because exclusive right to sell requires candidates to identify the listing type that generally earns commission regardless of who finds the buyer. 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: exclusive right to sell

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