Contracts, Finance, and Transfer Practice Question
Question
An agent compares two similar exam concepts for the Indiana Real Estate Broker Exam involving exclusive right to sell and broker affiliation and supervision. Which statement is most accurate for exam purposes? (Item 22)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. Recognize a listing that generally earns commission if the property sells during the listing term in a way that fits Indiana exam practice.
- C. The party who complains first automatically receives the remedy requested.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
B. Recognize a listing that generally earns commission if the property sells during the listing term in a way that fits Indiana exam practice.
Explanation
The correct answer is B because exclusive right to sell requires candidates to recognize a listing that generally earns commission if the property sells during the listing term. 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: Contracts, Finance, and Transfer
- Objective: exclusive right to sell