License Law and DRE Regulation Practice Question
Question
An escrow officer requests clarification from the broker involving unlicensed activity. Which statement is the most accurate exam answer? (Item 110)
Answer choices
- A. It requires the licensee to favor the other party over the licensee’s own client.
- B. Identify acts requiring a real estate license when done for compensation.
- C. It is primarily a tax rule with no effect on brokerage practice.
- D. It removes the need for written disclosure if the licensee believes the client already knows.
Correct Answer
B. Identify acts requiring a real estate license when done for compensation.
Explanation
The correct answer is B because unlicensed activity requires candidates to identify acts requiring a real estate license when done for compensation. 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: unlicensed activity