License Law and Brokerage Relationships Practice Question
Question
An agent notices a possible issue before a contract is signed in a Florida real estate transaction involving FREC authority. Which answer best reduces transaction risk? (Item 265)
Answer choices
- A. Recognize the Florida Real Estate Commission role in licensing and discipline.
- B. The licensee should avoid documenting the issue to reduce the chance of later questions.
- C. A licensee may give legal conclusions instead of recommending qualified legal advice when the issue is uncertain.
- D. A verbal understanding always replaces any written requirement in a real estate transaction.
Correct Answer
A. Recognize the Florida Real Estate Commission role in licensing and discipline.
Explanation
The correct answer is A because FREC authority requires candidates to recognize the Florida Real Estate Commission role in licensing and discipline. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Florida exam practice.
Question details
- Difficulty: easy
- Domain: License Law and Brokerage Relationships
- Objective: FREC authority