Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the Georgia Real Estate Salesperson Exam involving listing agreement and Georgia Real Estate Commission. What should the licensee understand? (Item 111)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. The rule applies only to commercial transactions and never to residential transactions.
- C. Identify broker employment terms, compensation, property description, and authorization in a way that fits Georgia exam practice.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
C. Identify broker employment terms, compensation, property description, and authorization in a way that fits Georgia exam practice.
Explanation
The correct answer is C because listing agreement requires candidates to identify broker employment terms, compensation, property description, and authorization. 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: Contracts, Finance, and Transfer
- Objective: listing agreement