Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the Indiana Real Estate Broker Exam involving listing agreement and broker affiliation and supervision. What should the licensee understand? (Item 21)
Answer choices
- A. Identify broker employment terms, compensation, property description, and authorization in a way that fits Indiana exam practice.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
A. Identify broker employment terms, compensation, property description, and authorization in a way that fits Indiana exam practice.
Explanation
The correct answer is A because listing agreement requires candidates to identify broker employment terms, compensation, property description, and authorization. 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: Contracts, Finance, and Transfer
- Objective: listing agreement