Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Massachusetts Real Estate Salesperson Exam involving license-required activity and Massachusetts Board of Registration. Which answer best reduces risk? (Item 109)
Answer choices
- A. Identify acts requiring a license when performed for compensation in a way that fits Massachusetts exam practice.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
A. Identify acts requiring a license when performed for compensation in a way that fits Massachusetts exam practice.
Explanation
The correct answer is A because license-required activity requires candidates to identify acts requiring a license when performed for compensation. The Massachusetts 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: license-required activity