License Law and DRE Regulation Practice Question
Question
A seller is reviewing documents before accepting an offer involving commission payment. Which response best protects the client and keeps the transaction compliant? (Item 30)
Answer choices
- A. It is primarily a tax rule with no effect on brokerage practice.
- B. Recognize that salespersons are generally compensated through their employing broker.
- C. It removes the need for written disclosure if the licensee believes the client already knows.
- D. It can be ignored if the transaction is expected to close quickly.
Correct Answer
B. Recognize that salespersons are generally compensated through their employing broker.
Explanation
The correct answer is B because commission payment requires candidates to recognize that salespersons are generally compensated through their employing broker. 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: hard
- Domain: License Law and DRE Regulation
- Objective: commission payment