Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Massachusetts Real Estate Salesperson Exam involving record retention and broker-salesperson supervision. What should the licensee understand? (Item 87)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Understand transaction records must be maintained for required periods in a way that fits Massachusetts exam practice.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
C. Understand transaction records must be maintained for required periods in a way that fits Massachusetts exam practice.
Explanation
The correct answer is C because record retention requires candidates to understand transaction records must be maintained for required periods. 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: medium
- Domain: Agency and License Law
- Objective: record retention