Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Georgia Real Estate Salesperson Exam involving license-required activity and Georgia Real Estate Commission. Which statement is most accurate for exam purposes? (Item 55)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. The issue can be ignored if the parties want to close quickly.
- C. Identify acts requiring a license when performed for compensation in a way that fits Georgia exam practice.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
C. Identify acts requiring a license when performed for compensation in a way that fits Georgia exam practice.
Explanation
The correct answer is C because license-required activity requires candidates to identify acts requiring a license when performed for compensation. The Georgia reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: medium
- Domain: Agency and License Law
- Objective: license-required activity