License Law and Brokerage Relationships Practice Question
Question
A buyer and seller disagree about a closing issue in a Florida real estate transaction involving brokerage relationships. Which answer best reduces transaction risk? (Item 76)
Answer choices
- A. The broker may mix client funds with business funds if the amount is small and later reconciled.
- B. The issue can be ignored if both parties want the transaction to close quickly.
- C. The rule applies only to commercial property and never to residential property.
- D. Distinguish transaction broker, single agent, and no brokerage relationship concepts.
Correct Answer
D. Distinguish transaction broker, single agent, and no brokerage relationship concepts.
Explanation
The correct answer is D because brokerage relationships requires candidates to distinguish transaction broker, single agent, and no brokerage relationship concepts. 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: hard
- Domain: License Law and Brokerage Relationships
- Objective: brokerage relationships