Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Indiana Real Estate Broker Exam involving salesperson affiliation and state agency and disclosure practice. Which statement is the best answer? (Item 93)
Answer choices
- A. Understand that salespersons or agents generally act through a broker in a way that fits Indiana exam practice.
- B. The requirement matters only when the buyer obtains institutional financing.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
A. Understand that salespersons or agents generally act through a broker in a way that fits Indiana exam practice.
Explanation
The correct answer is A because salesperson affiliation requires candidates to understand that salespersons or agents generally act through a broker. The Indiana 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: easy
- Domain: Agency and License Law
- Objective: salesperson affiliation