Agency and License Law Practice Question
Question
A salesperson notices a possible compliance problem for the Indiana Real Estate Broker Exam involving broker supervision and state agency and disclosure practice. Which statement is the best answer? (Item 38)
Answer choices
- A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- B. Recognize responsible broker oversight of affiliated licensees in a way that fits Indiana exam practice.
- C. The client’s preference eliminates the need to disclose known material facts.
- D. The party who complains first automatically receives the remedy requested.
Correct Answer
B. Recognize responsible broker oversight of affiliated licensees in a way that fits Indiana exam practice.
Explanation
The correct answer is B because broker supervision requires candidates to recognize responsible broker oversight of affiliated licensees. 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: medium
- Domain: Agency and License Law
- Objective: broker supervision