License Law and DRE Regulation Practice Question
Question
A first-time buyer asks for exam-focused clarification involving license status. Which response best protects the client and keeps the transaction compliant? (Item 94)
Answer choices
- A. It is primarily a tax rule with no effect on brokerage practice.
- B. Distinguish active license practice from inactive or unlicensed activity.
- 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. Distinguish active license practice from inactive or unlicensed activity.
Explanation
The correct answer is B 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