License Law and DRE Regulation Practice Question
Question
A listing agent notices a potential compliance issue involving commission payment. Which response best protects the client and keeps the transaction compliant? (Item 75)
Answer choices
- A. It requires the licensee to favor the other party over the licensee’s own client.
- B. It is primarily a tax rule with no effect on brokerage practice.
- C. Recognize that salespersons are generally compensated through their employing broker.
- D. It removes the need for written disclosure if the licensee believes the client already knows.
Correct Answer
C. Recognize that salespersons are generally compensated through their employing broker.
Explanation
The correct answer is C 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: medium
- Domain: License Law and DRE Regulation
- Objective: commission payment