Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Indiana Real Estate Broker Exam involving record retention and broker affiliation and supervision. Which answer best reduces risk? (Item 33)
Answer choices
- A. Understand transaction records must be maintained for required periods 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 transaction records must be maintained for required periods in a way that fits Indiana exam practice.
Explanation
The correct answer is A because record retention requires candidates to understand transaction records must be maintained for required periods. 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: record retention