License Law and DRE Regulation Practice Question
Question
An investor is comparing two properties involving license status. Which response best protects the client and keeps the transaction compliant? (Item 4)
Answer choices
- A. It can be ignored if the transaction is expected to close quickly.
- B. It requires the licensee to favor the other party over the licensee’s own client.
- C. It is primarily a tax rule with no effect on brokerage practice.
- D. Distinguish active license practice from inactive or unlicensed activity.
Correct Answer
D. Distinguish active license practice from inactive or unlicensed activity.
Explanation
The correct answer is D because license status requires candidates to distinguish active license practice from inactive or unlicensed activity. 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: License Law and DRE Regulation
- Objective: license status