Fair Housing, Practice, and Disclosures Practice Question
Question
A salesperson notices a possible compliance problem for the Georgia Real Estate Salesperson Exam involving unauthorized legal advice and community association and closing-attorney practice awareness. What should the licensee understand? (Item 48)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. The issue can be ignored if the parties want to close quickly.
- D. Avoid drafting legal rights or giving legal opinions beyond license authority in a way that fits Georgia exam practice.
Correct Answer
D. Avoid drafting legal rights or giving legal opinions beyond license authority in a way that fits Georgia exam practice.
Explanation
The correct answer is D because unauthorized legal advice requires candidates to avoid drafting legal rights or giving legal opinions beyond license authority. 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: hard
- Domain: Fair Housing, Practice, and Disclosures
- Objective: unauthorized legal advice